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If Bernanke Really Shakes The Tree, Half The World May Fall Out

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http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100024895/if-bernanke-really-shakes-the-tree-half-the-world-may-fall-out/

We no longer have a free market. The world’s financial asset prices have become a plaything of central banks and the sovereign wealth funds of a few emerging powers.

Julian Callow from Barclays says they are buying $1.8 trillion worth of AAA or safe-haven bonds each year from an available pool of $2 trillion. Nothing like this has been seen before in modern times, if ever.

The Fed, the ECB, the Bank of England, the Bank of Japan, et al, own $10 trillion in bonds. China, the petro-powers, et al, own another $10 trillion. Between them they have locked up $20 trillion, equal to roughly 25pc of global GDP. They are the market. That is why Fed taper talk has become so neuralgic, and why we all watch Chinese regulators for every clue on policy.

Excellent news what could possible go wrong with buyers who've got unlimited cash reserves to buy with. Fair to assume there's a big game of you buy ours we buy yours?

However I doubt they can ever stop buying now as they clearly are the market.

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  • 238 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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