You're like a grown addiction
That I can't deny
--Seal
Here is a graph of major central bank balance sheet assets:
Central bank assets have more than doubled since late 2008, rising from $4 trillion to over $10 trillion. It should be noted that the Fed alone is responsible for nearly $4 trillion of that increase.
As noted previously, the effect on stock markets has been straightforward.
This relationship explains why stock markets rally on bad economic news. They sense additional easy money fix.
position in SPX
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If current trends continue, the typical U.S. worker will be considerably more productive several decades from now. Thus, one might argue that letting future generations bear the burden of population aging is appropriate, as they will likely be richer than we are even taking that burden into account.
~Ben Bernanke, October 4, 2006
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