Except that since 2008, we've been experiencing an historically unprecedented flow of newly-created fiat money by way of bonds -> TBTF European and US banks -> central banks (and central banks don't need to have money in their accounts to buy something with bank transfer).
It's a massive flow of some of the cheapest capital available being pumped regularly into government treasuries and private financial institutions, with central banks (for whom losses are meaningless) holding more and more of the bonded debt continuously, every year.
Then, whether or not a government program like the "Working Group On Financial Markets" ('pluge protection team') prevents cascading selloffs in equity positions, or whether it's simply the self-reinforced cycle of buying-2x%-up-on-a-x%-drop asset trading algorithms that have enough cash this month because of the central banks, and don't have to sell down their equity positions because last months positions are neutral-to-good, there's enough breathing room to trade up again this month, and a reliable "Federal Reserve put" backstopping everyone.
This is happening because we live in a new state of financial fantasy ever since everyone went bankrupt in 2008. Now they just keep printing money and sharing it amongst elite government (military) powers and private equity/asset controlling powers.
Few in the private sector would be solvent if they actually had to take losses on their assets back in 2008, in an environment where liquidity could not match obligations, and everyone would have to sell. It's the same for the public balance sheets, who need profits in the private sector to have any money at all, and who usually overspend and oblige themselves to more debt than they can pay down even if good times lasted forever.
Debt is money, and debt is an asset. Who cares if there's always more debt than money?
We're just all continuously bull-shitting-out money from the central banks, to the elite capital/government institutions, down to the middle- and upper-class. And to the U.S. war machine, which has a magic credit card with no limit, but which would have gone bankrupt in anything like a real market.
One reason they have to do this is to keep baby boomers' retirement "assets" worth something, in a situation where they all are going to want to cash out of 50 year's of liquidity-draining investments over a 20 year period, which will be quite a liquidity-draining effect on the equity markets. But that's a whole 'nother long discussion.
The West bullshits itself pretty hardcore over the television, and on the internet, and in their suburbs, and at their corporate workplaces. But it's the bullshit financial markets (and the fantasy-land equity market valuations) that is the both the biggest pile of bullshit of all, and is the power source which keeps the rest of the bullshit from collapsing.
But, hey, go ahead, tell yourself these are "conservatively" priced markets. You're a great citizen.
It's a massive flow of some of the cheapest capital available being pumped regularly into government treasuries and private financial institutions, with central banks (for whom losses are meaningless) holding more and more of the bonded debt continuously, every year.
Then, whether or not a government program like the "Working Group On Financial Markets" ('pluge protection team') prevents cascading selloffs in equity positions, or whether it's simply the self-reinforced cycle of buying-2x%-up-on-a-x%-drop asset trading algorithms that have enough cash this month because of the central banks, and don't have to sell down their equity positions because last months positions are neutral-to-good, there's enough breathing room to trade up again this month, and a reliable "Federal Reserve put" backstopping everyone.
This is happening because we live in a new state of financial fantasy ever since everyone went bankrupt in 2008. Now they just keep printing money and sharing it amongst elite government (military) powers and private equity/asset controlling powers.
Few in the private sector would be solvent if they actually had to take losses on their assets back in 2008, in an environment where liquidity could not match obligations, and everyone would have to sell. It's the same for the public balance sheets, who need profits in the private sector to have any money at all, and who usually overspend and oblige themselves to more debt than they can pay down even if good times lasted forever.
Debt is money, and debt is an asset. Who cares if there's always more debt than money?
We're just all continuously bull-shitting-out money from the central banks, to the elite capital/government institutions, down to the middle- and upper-class. And to the U.S. war machine, which has a magic credit card with no limit, but which would have gone bankrupt in anything like a real market.
One reason they have to do this is to keep baby boomers' retirement "assets" worth something, in a situation where they all are going to want to cash out of 50 year's of liquidity-draining investments over a 20 year period, which will be quite a liquidity-draining effect on the equity markets. But that's a whole 'nother long discussion.
The West bullshits itself pretty hardcore over the television, and on the internet, and in their suburbs, and at their corporate workplaces. But it's the bullshit financial markets (and the fantasy-land equity market valuations) that is the both the biggest pile of bullshit of all, and is the power source which keeps the rest of the bullshit from collapsing.
But, hey, go ahead, tell yourself these are "conservatively" priced markets. You're a great citizen.