What Central Banks Know That You Don't

Why Global Central Banks Continue To Flood The System With Liquidity:

Central banks know that the global economy still needs help. Over the past 5 years, global central banks have flooded the system with liquidity and embarked on an unprecedented easy money measures that are designed to help both Main St & Wall St. Wall Street has surged over the past 5 years and continues to do very well but the global economy (Main st) is barely growing.

Something Is Not Right

A few weeks ago, the European Central Bank (ECB) shocked the world when they fired another round of easy money policy measures and took rates into negative territory. Many people were caught off guard and left scratching their heads. The answer can be found in a quick glance at any major European bank (see charts). On average, European banks are heading south- even while the ECB, Fed and other Central Banks continue flooding the system with liquidity. If the global economy & the Banks are in trouble in this environment- what do you think would happen if Central Banks stop their easy money stance?

3 European Banks:

Deutsche Bank: DB


Credit Suisse: CS