Didn’t I tell ya not to get anything big? Didn’t I tell you not to do nothin’ to attract attention? What are you, stupid? Take it back!
All the Markets Need Is $200 Billion a Quarter From the Central Bankers
By Simon Kennedy Oct 21, 2014 7:18 AM ET
The central-bank put lives on.
Policy makers deny its existence, yet investors still reckon that whenever stocks and other risk assets take a tumble, the authorities will be there with calming words or economic stimulus to ensure the losses are limited.
A put option gives investors the right to sell their asset at a set price so the theory goes that central banks will ultimately provide a floor for falling asset markets to ensure they don’t take economies down with them.
There is a requirement of banking, for it to be allowed to exist; it should pay compound interest to savers that is above the rate of inflation. Also, banks that lend unwisely should be allowed to fail. There should be…
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