From everyone's favorite German commentator:
It's the liquidity, stupid! Nasdaq 100 and the combined balance sheet of the Fed, ECB, and Bank of Japan move in tandem. pic.twitter.com/6HIw7hi4ox
— Holger Zschaepitz (@Schuldensuehner) April 2, 2023
We've been beating this drum for over a year. Most recently:
- "The Cantillon Effect: Because of Inflation, We’re Financing the Financiers"
- The Cantillon Effect and Populism
- QT? What QT?
- Fed Balance Sheet: The Recent Ructions Have Wiped Out All The Quantitative Tightening Of the Last Four Months
- QT, We Hardly Knew Ye: JPMorgan Believes The New Fed Asset Purchase Program, BTFP, Could be Around $2 Trillion
- "Any attempt at analysis of Fed policy and market moves by traditional means...is just so much blather"
- Liquidity In The System: See Also U.S. Commercial and Industrial Loans
- "The secret to stocks’ success so far in 2023? An unexpected $1 trillion liquidity boost by central banks."
That gets us back to March 3 (Obsessive? Moi?)
Here are some older favorites:
January 27, just looking at the U.S. "How Can We Have A Bear Market Rally? Because Financial Conditions Aren't Getting Tighter, Au Contraire...."
Preceded, Jan. 23, by the Fed, BoJ and ECB in "An Interesting Chart: Equities and Central Bank Balance Sheets"
And China in December:
"China Quietly Launches QE: Beijing Orders Large Insurers To Buy Bonds To Contain Selling Panic"