And may there be a pandemic in the world around, collapse of the economy, tens of millions of unemployed, street riots or civil war - and the indexes will rise. It will not last long and will end in disaster – but that's a completely different story.
People are constantly asking “Why are American stock markets not responding to the turmoil in the country??».
And they don't react to anything anymore!
Not for riots and looting, nor the rise in oil prices, nor on 40 million unemployed in the US.
They completely lost touch with reality (not for nothing that The Economist magazine painted a huge rift between Wall Street and the rest of New York on one of its latest covers), virtualized and they are doing well.
Why are they doing well?? Because the Fed has cut two of its own ribs and is doing autofellation. Sorry, but otherwise it simply cannot be described.
Well, that is, they gave themselves almost four trillion dollars (with the ability to increase this amount "as needed") to buy back shares of any companies, who deem it necessary. For any price, deemed "fair".
There, a commission of five is in charge of the distribution of these four trillion. (who, moreover, are not accountable to anyone). If I'm not mistaken, then they are all from "Black Rock" (Black Rock). Dudes just got into a fairy tale.
AND, of course, "The market settled everything at once". Well, that is, to these five wonderful, honest and incorruptible professionals were immediately approached by the right guys with suggestions, which cannot be refused. And the process started.
They buy everything out, moss and swamp, any rubbish. Shale company, which practically stopped drilling new wells? Give your shares! Airline with flightless planes due to the pandemic? Will go! Construction company, which builds nothing for the same reasons? Everything will work for us!
General principle you get it. Price doesn't matter in principle, if you have a crazy printer under control, printing any amount of money.
Everyone remembers "Wedding in Malinovka"? know, take everything - I'll draw myself some more!
FRS and commissions created by it to buy out "valuable" (especially now) securities act precisely on this principle.
At the same time we see, that the real sector of the American economy, already rapidly collapsing, desperate for money, and all the dollars, generously printed by the fed, immediately go to the stock exchange.
As a result, the stock market and the Fed formed a closed loop (they don't even need intermediary banks now), which has nothing to do with the real economy, does not depend on her and is not interested in her.
As you would say before, "They have their own atmosphere there". rather, its own special "Matrix", from which Wall Street dealers do not want to get out and do not intend to (coke and prostitutes have, and the rest does not bother them).
And may there be a pandemic in the world around, collapse of the economy, tens of millions of unemployed, street riots or civil war - and the indexes will rise. It won't last long and will end in disaster - but that's a completely different story..
