Global Central Banks have herded gamblers into the S&P 500. There's no way out, but that's beside the point:
Liquidity driven fake rally visualized...
Central Bank "assets" (red) with S&P 500:
I'm here in Lotus-Land (Vancouver), the last bastion of Globalization wherein ultra-wealthy Chinese hide their money via multi-million dollar non-arms-length real estate "transactions" aka. buying properties from themselves at inflated prices. Just this week, the B.C. government finally caved to political pressure and is now implementing a 15% "transaction tax" on foreign real estate buyers. This after they admitted that they systematically understated the extent of foreign buyer transactions in the Vancouver market by a few hundred million per month. Meanwhile, the Federal Regulator has asked local banks to stress test a mere 50% drop in Vancouver real estate prices. Yes, you read that right...
Nevertheless, it was Japan that invented CasinoNomics: the policy of inflating serial asset bubbles all while the real economy is sold off to make the quarter. The liquidation of the status quo for special dividends. Now we're all trapped on the same roller coaster ride to hell, except we had a glimpse in 2008 of what happens when this asinine policy is attempted on a global scale. It doesn't "work" the way the Central Bank croupiers expect it to. Meaning that all of the world's mercantilist exporters can't collapse at the same time without shit breaking. Already corporate revenues are declining at recession speed and it's not even a recession. Yet. It was China's historically colossal fiscal stimulus package that bailed out Globalization in 2008, because there always needs to be a buyer of last resort. This time there won't be one...
This is Vancouver real estate market (red) with Central Bank "assets" (% performance). There's no way out, but that's beside the point, assuming that banks can handle a -50% decline in house prices i.e. 7 years of gains. U.S. house prices in grey:
http://www.housepriceindex.ca/
