A Facade of Rationality – Covering Up a Kiting Scam

Goldman and Barclays claim that the bull market will continue, because we will enter rational exuberance from corporate tax cuts.


1.) $4.5 trillion in QE

2.)$4 trillion  in corporate stock buybacks

3.) And $4 trillion in corporate bond sales.

All since the financial crisis?!

Na, it’s probably just a coincidence.

From FT:
“where the size of the market has soared by 42 per cent to $7.7tn, the number of dedicated SEC staffers has barely budged: one employee devotes half his time to it.
The Bank for International Settlements estimates that the bond holdings of the 20 biggest asset managers jumped by $4tn between 2008 and 2012, growing to account for 40 per cent of their collective $23.4tn portfolio. At least $766bn has flowed into US bond funds alone since 2008, according to EPFR data, far outstripping all other asset classes in the same period.”
Andrea Iravani



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