In a recent note, Eric Peters, CIO of One River Asset Management, summarizes everything that's been happening over the past few years in one tidy anecdote. Citing an unnamed CIO, he points out that the central bank was created to help its member banks, and it attempts to impact the real economy by using interest rates as a mechanism to control the attractiveness of lending money.
It often comes as a surprise to those unfamiliar with the Bank of Japan's M.O., that unlike other developed central banks (except the SNB, of course, while even the PBOC recently admitted it now buys stocks directly to prop up the Chinese stock market via the Buttonwood SPV), the BoJ has no qualms about admitting it actively purchases equities, either in the form of single name stocks or, more actively in recent years, ETFs. Or, as the case may now be, selling them.
Submitted by David Stockman via Contra Corner blog,
Donald Trump’s patented phrase “we aren’t winning anymore” lies beneath the tidal wave of anti-establishment sentiment propelling his campaign and, to some considerable degree, that of Bernie Sanders, too.
In an oddly ironic twist, today Donald Trump announced that he has picked as chairman of his newly launched fundraising operation none other than a former employee of the bank he has repeatedly criticized in the past, and which he used as a foil to criticize Ted Cruz: Goldman Sachs.
by David Haggith