Essentially, central banks — including our own Reserve Bank — buy government bonds, or debt, in the open market. That helps lower market interest rates and pumps cash into the economy.
No-one has ever quite figured that out. And what has occurred in the meantime is that whenever there is a problem — either in financial markets or the real economy — they resort to ever more financial stimulus. This time around, governments have jumped in on the act. With global interest rates at zero, they ditched their long-held attachment to austerity and decided to spend their way out of recession.For the past month, investors haven't been the slightest bit interested in bad news.Donald Trump's refusal to concede defeat, and the potential threat that posed, was largely ignored.
It's not as though central bankers deliberately set out to push stocks to the moon. It just happened as a by-product.
i agree, it's all BS.. i've been saying it for years. Why is the world so stupid & predictable? It's tiresome being right about everything all the time..
🤪
By the way Brendan Moran the Bondi rapist... Got off.. Thanks to his Bar buddies it's not only hushed up, but full corrupt too.
Bc your tax paying money is profiting big business.... you money under the guise of 'job keeper' is going straight to the profit line of the business
Put your money in the bank or in bank shares 🤔
Cause of 'free money' from Central Banks, obvi. No other rational explanation exists.
Booming stock markets are a measure of how poorly-conceived stimulus spending has been.
Retail is also booming
A lucid explanation to the question raised. The end of the 40yr bull market in bonds, characterised by rates going to zero and below, is the end of politics as we know it and certainly as the members of this lnp ministry were trained or experienced economics. auspol
I was going to savage the headline based on a decade of inane reasons. “As if you knew or would even reveal the truth” Lucky I read your article. Finally someone discussing the elephant in the room. People need to hear this and prepare.
. Because govt threw money at rich people who don't know what else to do with it. The biggest transfer of wealth from public purse to private bank accounts in the history of the world. . .
Because the people are bot spending billions on air travel..
The stock market reflects how the rich are doing, not the poor.
Because the state of the stock market has little relationship to the state of the economy
WallStreet and MainStreet vastly unrelated
central banks baby !!
The Fed has been pumping newly printed money into the markets for the last year and a half.
Because its all rigged by the plunge protection team.
Fed. Money Printing.
Well there’s the economy. Top 200 companies. Then there is the labour market. The rest of us.
Because markets are based on future expectation. With a potential vacine and new leadership in the USA investors are feeling bullish
computer trading
Because Trump is gone, and 2020 is plummeting to an end.
😂😂😂😂😂
It's only a recession for the poor.