Where Will Institutional Investors (Big Money) Go If Central Banks Stop The Cheap Money Stimulus?
I imagine the tightening would be bad for the Euro (ECB) as capital could flee to the U.S. Market as Wall Street may look more appealing...
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Pensionpocolypse: Pension Crisis
Major institutions with massive funds must be looking to park capital somewhere as the attempt to "manage" the markets continue.
Managing the market corrections may be more difficult than manipulating the bull run and the bubbles.
I've read contradictory reports from institutions, for example the ECB chief economist said they required more stimulus before they are ready. While the Bank of Canada and the Fed join in the tightening policy.
Analysts are asking, what will the central banks do when the next recessions occurs?
I ask, when will the central banks offer their emergency policy solutions?
I am watchful for the crisis management team to engineer a crisis and offer the solution.
Mass Media will direct all eyes on Janet Yellen as she delivers her staged and scripted performance today to Congress.
- Note Reuters reports:
With years of massive debt purchases and negative ECB interest rates apparently coming to an end, the monthly survey, conducted on July 6-8, showed investors were more pessimistic than ever before about the impact of central bank policy on the European bond market.
- The German publication DWN warned that the German Pension system is collapsing:
The core problem of the German economy and society is miserable demography. A positive development, namely the increasing longevity of the population, is an extremely negative groundbreaking, namely a small number of children. This is reflected in one of the lowest birth rates in the world – and this has been the case for decades. The record-breaking birth rate is by no means rooted in a biological, but in deeper social causes and inadequate policies at different stages. One consequence is a pension system that is not sustainably financed , because the ratio of contributors and receivers will drastically deteriorate.
- Jul 10, 2017 Martin Armstrong pointed out:
The German Secretary General of the Economic Council of the CDU, Wolfgang Steiger, has highlighted the growing economic crisis in Europe. The negative interest rates of Draghi and the ECB have totally failed. He has pointed out that despite various EU stress tests for banks, time and time again they continue to fail. He has stressed himself that this does not strengthen the confidence in the rules or Europe. He has come out and bluntly states that ONLY reforms will work, not low interest rates.
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Looks like the Fed has already stopped the cheap money stimulus.
did you @goldkey see documented evidence?
The economies are slowing down (With a few exceptions in some emerging markets) and the Fed's publicity talks may have slowed the markets down too, but as to the creating digital money at the touch of a key - that cheap money is flowing to prop up the markets or the system would collapse.
It is no secret that Interest rates are this low for development funds, corporate profits, markets' asset prices and carry trades.