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The dialogue on this thread is all good and thought provoking. Quite an enjoyable read.
In the course of all my readings, I think today's world money flows correlate more closely with the mid 1920's than any other period in time. NIRP is affecting and influencing professional money decisions of pooled capital and redirecting it our way. More along the path of Chinese money driving up Vancouver real estate prices to beyond believable prices, but on a much larger scale. Remember the first goal of a professional money manager is not to lose capital. NIRP insures loses so investment will seek a positive yield no matter how little, as it is better than a loss. The managers are paid on monthly/quarterly/yearly periods and they don't get paid for losses. They will not accept negative bond and cash deposit rates. As long as Europe and Japan have negative yields, all the displaced capital from QE bond buybacks will flow our way. Remember that the EU also is buying corporate bonds and that freed capital is not staying in Europe. Dow 40,000 in your lifetime. And again you will not read that on Yahoo.
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