Over the years I have pounded both the lectern, as well as my keyboard on the fact, without central bankers – there would be (and still is ) no market.
Making this type of statement when you’re in the company of Ph.D’s, fund managers, or wide-eyed entrepreneurs who see themselves as the next “Zuck & crew” is not only not fun, it can be downright nauseating to say the least. The rebuttals and more as to argue otherwise, as I’ve stated ad nauseam, border on nothing more than wistful fairy-tales.
So with that said (and all that I have said previous ) I now offer de facto proof from one of the most heralded reporting agencies by those very doubters and arguing aficionados that what I’ve been stating is the correct side of the argument. To wit:
From Reuters™, today August 30, 2016: Swiss Central Bank Steps Up Stock Buying Spree.
And the money quote:
“ZURICH, Aug 30 Switzerland’s central bank now owns more publicly-traded shares in Facebook than Mark Zuckerberg, part of a mushrooming stock portfolio that is likely to grow yet further.
The tech giant’s founder and CEO has other ways to control his company: Zuckerberg holds most of his stake in a different class of stock. Nevertheless this example illustrates how the Swiss National Bank has become a multi-billion-dollar equity investor due to its campaign to hold down the Swiss franc.”
To reiterate what I’ve consistently stated, all while being relentlessly, and near mercilessly ridiculed for even making such an argument. Again, to wit:
“The only thing that matters in business today is whether or not your company is on the buy sheet of some central bank. And just how does one expect to compete when you have a great product or service, but your competitor’s bonds or stock is on that buy sheet? Your debt offerings will be left withering in the wind as your competitors get bought hand over fist with money printed ex nihilo! This is precisely how crony capitalism is fueled and expanded.”
I was going to put this under the F.T.W.S.I.J.D.G.I.G.T. archive. (for those who say I just don’t get it…get this)
But this one stands on its own.
© 2016 Mark St.Cyr