We've been spending a lot of time herein of late on interest rates, their recent rise, the monster financial market risks should they continue to rise, and, thus, the assuredness that central bankers will do everything within their legal capacity (and more) to stem that tide before (or immediately after) it crashes into the stock market's shore.
Well, make no mistake, it's not just U.S. central bankers I'm referring to. I mentioned in yesterday's video how, Tuesday night, China stepped right in and bought up stocks (on a mere 3.5% pullback). And, lo and behold, while the European Central Bank (ECB) held pat on interest rates yesterday, its leader said in no uncertain terms that they do not like the recent rise in rates and stand ready to speed up bond purchases, big time, to solve that problem. EU-member government bonds promptly rallied (yields fell) on that news...
Have a look at the size (and crazy growth) of the ECB's balance sheet:
"“In a digital-first world, where millennials obtain all their answers to problems at the click of a mouse or swipe of a finger, the reliance on technology to solve every question confuses people’s perception of their own knowledge and intelligence. And that reliance may well lead to overconfidence and poor decision-making,” says Rony Zarom, founder of the video collaboration platform newrow."