Buried in another story regarding the provision of credit lines by central banks today, Bloomberg reports:
“As markets seized up this week, central bankers pushed more than $200 billion into markets with those in Japan, Hong Kong, South Korea and Australia doing so again today.”
Woah.
Pumping money into the market in order to artificially prop up prices is a vastly different exercise to lending it to other people. If you or I did that, it would be called market manipulation and a earn us a spell in jail. When governments do it, that’s okay.
Either way the result is the same.
Prices are now not what they should be and traders like us will find it very difficult to make decisions.
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