Central Bank Dominion

All our times have come
Here, but now they're gone
--Blue Oyster Cult

A trader who writes for Bloomberg notes that he's increasingly scared about central bank intervention in financial markets. Markets are hitting all time highs while economic indicators plummet and sage investors warn about extreme market risk.

He observes that "central banks and their sovereign wealth funds have become the major players dominating market activity. One central banker after another has admitted they are fixated on market reactions to their comments and actions."

What if markets don't react positively to those actions? Simple. If you're a central banker, then you create some modern day stock pools and start buyin' 'em.

The trader notes, "A wise central banker told me I should learn to live with central banks being the dominant force in the market, whether I like it or not."

This is like being told to learn to live with despotism.

Confidence in central bank despotism has been high. When it turns, the hubris of planners paves the road to ruin.