While US centric traders and pundits are focused on the Fed and its influence on the markets, it pays to remember that there are other major central banks in the world. They all pump liquidity into the same pool, and all the same kids are swimming and peeing in that pool. There’s huge overlap between US and Japanese Primary Dealers and the banks who play in the ECB realm. But different central bank policies have different impacts. The Fed and BoJ buy securities outright. The ECB makes loans (often forced on some recipients who may be unwilling), and sets rules allowing when they can be repaid. So the policy effects are different.
I track these trends weekly in the Professional Edition Fed Report.
Econ Chart Update- CPI, Jobs, Hourly Earnings, Real Retail Sales Show QE/ZIRP Massive Failure
Stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, along with regular updates of the US housing market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Try it risk free for 30 days. Don’t miss another day. Get the research and analysis you need to understand these critical forces. Be prepared. Stay ahead of the herd. Click this link and begin your risk free trial NOW!
See Rick Santelli use one of my proprietary charts on CNBC to explain how the Fed impacts the stock market directly through its trades with the Primary Dealers. This is just one example of the dozens of proprietary charts that I build that will help you to clearly see and understand the market’s trend, and when that trend is beginning to change.
Follow my comments on the markets and economy in real time @Lee_Adler on Twitter!
