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Bank of America calls top of cash mountain, cautions on 'fake markets'

The bank’s analysts calculated that for the past 8 weeks central banks around the world have been buying a staggering $2.4 billion of financial assets an hour.

 

Maybe.

The last 12 years has certainly proven that the distortions they can create in capital markets can go on longer and to more extreme levels than a lot of people would have every thought possible.

But whatever narrative someone is telling you is driving US equity markets is nonsensical. What BofA is pointing out is the only thing propping up the silliness. Central banks are pumping money into the casino at a crazy rate, and they are managing to reflate their bubble for now.

It's taking an absurd amount of debt buying.

It just seems absurd to more people finally, because we are looking at 20 percent unemployment, earnings down year over year by at least 20 percent, market cap to GDP up over 140 percent now, multiples not mattering anymore, etc.

You know it's particularly absurd, when Wall Street, which is in the business of selling securities to people, is calling them "fake markets."