/biz/ - Business & Finance

I work as a trading strategist. Ok.Pic related, it's of actual financial market

>>641830

Yes, thank God for our stable economy.

You be the judge.
The US government and the fed as well as the EU central bank explain the current situation as a slow rebound from a recession where the markets are steadily rising. For some weird and unexplainable reasons inflation, as measured in price increase of a basket of goods, is extremely low. So the markets are rising and the prices are steady. The recession is gone and the prices are steady...
Now, just a reminder, it is known, that central banks own a lot of shares on the market. Some 30 trillion $ worth to be exact. That is roughly over 50%. Over 50% of the stock market is owned by central banks that is.

So I ask you, is it not true, that the stocks are not rising, but instead are inflated? Did the central banks not just in effect create the money and stuff it into stocks?

Now you ask me: "But if they created the money and the markets are inflated, why don't we have inflation then?".
And I answer: "Is inflation not measured as the cost of loaf of bread, a lunch at the cafeteria or the cost of a cup of coffee? Do you think inflation can measure this? Do you think the economists receiving the newly made money directly spend it on more food? More coffee? More clothing? I reckon the economists making money in these markets eat just as much as they did and wear one pair of shoes at once and one pair of trousers. Their spending didn't go up. What did go up was they now invest more money into stocks. Give an American stock broker a thousand dollars and he puts it into stocks. Give him a million and he puts it into stocks.

So I ask you, is it possible that we have recovery and stocks are rising because companies are becoming worth more or is it perhaps possible that a part of the market is inflated and that all that has changed in the past few years is that a few stockbrokers started paaing around larger numbers on their computers?

When will it happen, /biz/? We all know it can't continue like this.