Summary:
By EconMatters In this Video, we discuss the fact that Central Banks have basically morphed into Hedge Funds with similar risky investing strategies, except they buy without any regard to the underlying fundamentals of the assets they are buying. When did the Swiss Citizens say it was the proper role for the Swiss National Bank to be buying US Stocks? How is this stimulating the Swiss Economy? Central Banks have really gone off the rails with regards to their Monetary Policy Tools. This is clearly exemplified in what the Swiss National Bank is currently doing in financial markets, these bizarre overstretch of policies put the entire financial system at risk, and have resulted in massive stock market bubbles around the world. These Central Banks are not even investing based upon company fundamentals, just trying to square account imbalances in what has become the race to the bottom in the Currency Wars! We need to start having hearings on these matters because Central Banks have morphed into Risky Hedge Funds, well beyond their intended purpose of managing interest rates in the course of normal business cycles.
Topics:
EconMatters considers the following as important: Bank, Business, Central Bank, Central Banks, Economics, economy, Fail, Featured, Financial crisis of 2007–2008, Great Recession, hedge fund, Monetary Policy, newslettersent, SNB, stock market, Stock market crashes, Swiss National Bank, Systemic risk, Twitter, Zero interest-rate policy
This could be interesting, too:
By EconMatters In this Video, we discuss the fact that Central Banks have basically morphed into Hedge Funds with similar risky investing strategies, except they buy without any regard to the underlying fundamentals of the assets they are buying. When did the Swiss Citizens say it was the proper role for the Swiss National Bank to be buying US Stocks? How is this stimulating the Swiss Economy? Central Banks have really gone off the rails with regards to their Monetary Policy Tools. This is clearly exemplified in what the Swiss National Bank is currently doing in financial markets, these bizarre overstretch of policies put the entire financial system at risk, and have resulted in massive stock market bubbles around the world. These Central Banks are not even investing based upon company fundamentals, just trying to square account imbalances in what has become the race to the bottom in the Currency Wars! We need to start having hearings on these matters because Central Banks have morphed into Risky Hedge Funds, well beyond their intended purpose of managing interest rates in the course of normal business cycles.
Topics:
EconMatters considers the following as important: Bank, Business, Central Bank, Central Banks, Economics, economy, Fail, Featured, Financial crisis of 2007–2008, Great Recession, hedge fund, Monetary Policy, newslettersent, SNB, stock market, Stock market crashes, Swiss National Bank, Systemic risk, Twitter, Zero interest-rate policy
This could be interesting, too:
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By EconMatters
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Tags: Bank,Business,Central Bank,central banks,Economics,economy,Fail,Featured,Financial crisis of 2007–2008,Great Recession,hedge fund,Monetary Policy,newslettersent,stock market,Stock market crashes,Swiss National Bank,Systemic risk,Twitter,Zero interest-rate policy