Screw Islamic terrorism. The fall of Western civilization will be caused by bankers, --- know the enemy.
they control the federal reserve and our politicians. On Apr 26, 8:09 am, Travis <[email protected]> wrote: > ** ** > > This is, by far, the best little bit of stupidity and insanity I've seen > yet from the central bankers. They're using quantitative easing to raise > the price of equities, then they're buying equities on the highs, while at > the same time increasingly shunning bonds, because the yields are too low. > Those yields are too low, by the way, because of the zero-percent interest > rates introduced by the very same central banks. That's just bloody great. > It's damned brilliant, actually.**** > > ** ** > > Screw Islamic terrorism. The fall of Western civilization will be caused by > bankers, not Islamists. It'll be the ultimate self-inflicted wound. When > the equities bubble bursts, and it will burst, it'll be lights out.**** > > [image: Inline image 1] > **** > Central Banks Load Up on Equities**** > > By Sarah Jones - Apr 25, 2013 2:34 PM GMT+0200**** > > **· **Facebook > Share<http://www.facebook.com/sharer.php?u=http%3A%2F%2Fbloom.bg%2F17jAxUP&;...> > **** > > **· **** ** > > **· > **LinkedIn<http://www.linkedin.com/shareArticle?mini=true&url=http://www.bloombe...> > **** > > **· **Google > +1<https://plus.google.com/share?hl=en&url=http://www.bloomberg.com/news...> > **** > > **· **52 > COMMENTS<http://www.bloomberg.com/news/2013-04-24/central-banks-load-up-on-equ...> > **** > > **· **** ** > > **· > **Print<http://www.bloomberg.com/news/print/2013-04-24/central-banks-load-up-...> > **** > > **· **QUEUE**** > > Q**** > > Play**** > > Central Banks Turning to Equities, but Not the Fed**** > > Central banks, guardians of the world’s $11 trillion in foreign-exchange > reserves, are buying stocks in record amounts as falling bond yields push > even risk- averse investors toward equities.**** > > Enlarge image[image: Central Banks Load Up on Equities as Low Rates Kill > Bond > Yields]<http://www.bloomberg.com/photo/central-banks-load-up-on-equities-as-l...> > **** > > Pedestrians pass the Bank of England (BOE), left, at Bank underground > station in London. Some central banks, including the Fed in Washington and > the Bank of England in London, have no mandate to buy stocks directly. > Photographer: Chris Ratcliffe/Bloomberg**** > > [image: Central Banks Buy Stocks as Low Rates Kill > Yields]****<http://www.bloomberg.com/video/central-banks-buy-stocks-as-low-rates-...> > > *5:49<http://www.bloomberg.com/video/central-banks-buy-stocks-as-low-rates-...> > * > > ** ** > > April 25 (Bloomberg) -- Massimiliano Castelli, head of strategy at UBS > Asset Management's global sovereign markets unit in London, and Bloomberg's > Sarah Jones talk about central banks' investment in stocks. They speak with > Erik Schatzker and Sara Eisen on Bloomberg Television's "Market Makers." > (Source: Bloomberg)**** > > Enlarge image[image: Central Banks Load Up on Equities as Low Rates Kill > Yields]<http://www.bloomberg.com/photo/central-banks-load-up-on-equities-as-l...> > **** > > Central banks typically hold assets such as government debt that can be > sold easily if funds are needed to counter a move in their currency. > Photographer: Junko Kimura/Bloomberg**** > > Enlarge image[image: Central Banks Load Up on Equities as Low Rates Kill > Bond > Yields]<http://www.bloomberg.com/photo/central-banks-load-up-on-equities-as-l...> > **** > > The Bank of Japan announced plans to put more of its $1.2 trillion of > reserves into exchange-traded funds this month as it doubled its stimulus > program to help reflate the economy. Photographer: Tomohiro Ohsumi/Bloomberg > **** > > Enlarge image[image: Central Banks Load Up on Equities as Low Rates Kill > Bond > Yields]<http://www.bloomberg.com/photo/central-banks-load-up-on-equities-as-l...> > **** > > Ben S. Bernanke, chairman of the U.S. Federal Reserve, center, Alexandre > Tombini, president of the central bank of Brazil, left, and Ibrahim > Al-Assaf, Saudi Arabia's finance minister, arrive to a Group of 20 nations > (G- 20) finance ministers and central bank governors family photograph in > Washington, D.C. on April 19, 2013. Photographer: Andrew Harrer/Bloomberg*** > * > > Sponsored Links**** > > Buy a link <http://www.industrybrains.com/signupgroup/Welcome_IB.aspx>**** > > In a survey of 60 central bankers this month by Central Banking > Publications<http://www.centralbanking.com/> and > Royal Bank of Scotland Group Plc, 23 percent said they own shares or plan > to buy them. The Bank of Japan <http://topics.bloomberg.com/bank-of-japan/>, > holder of the second-biggest reserves, said April 4 it will more than > double investments in equity exchange-traded funds to 3.5 trillion yen > ($35.2 billion) by 2014. The Bank of > Israel<http://topics.bloomberg.com/israel/> bought > stocks for the first time last year while the Swiss National > Bank<http://topics.bloomberg.com/swiss-national-bank/>and > the Czech National Bank have boosted their holdings to at least 10 percent > of reserves.**** > > “In the last year or so, I have spoken with 103 central banks on > diversification,” Gary Smith <http://topics.bloomberg.com/gary-smith/>, > London-based global head of official institutions at BNP Paribas Investment > Partners, which oversees about $649 billion, said in a phone interview. “If > reserves are growing, so are diversification pressures. Equities are not > for every bank tomorrow, but more are continuing down this path.”**** > > Managers of banks’ assets are looking for alternatives to holding > government bonds after efforts to stimulate growth from the Federal > Reserve<http://topics.bloomberg.com/federal-reserve/>, > the Bank of Japan <http://topics.bloomberg.com/japan/> and the Bank of > England helped send yields <http://www.bloomberg.com/quote/USGG10YR:IND> near > to record lows. Central banks’ foreign- exchange holdings have increased by > about $8.5 trillion globally in the past decade, exceeding levels needed > for day-to-day currency administration.**** > Currency Moves**** > > Central banks typically hold assets such as government debt that can be > sold easily if funds are needed to counter a move in their currency. The > reliance on fixed-income securities at a time when bond yields are below > inflation in many countries risks allowing to the value of reserves to > decline.**** > > While consumer prices are rising at a 1.5 percent annual rate in the U.S. > and 1.7 percent in the euro area<http://www.bloomberg.com/quote/ECCPEMUY:IND>, > the average yield to maturity of securities in Bank of America Merrill > Lynch’s Global Broad Market Sovereign Plus Index fell to an all- time low > of 1.34 percent on April 23, according to data compiled by Bloomberg.**** > > The SNB allocated 82 percent of its 438 billion Swiss francs ($463 billion) > in reserves to government > bonds<http://topics.bloomberg.com/government-bonds/> in > the fourth quarter, according to data on its > website<http://www.snb.ch/en/iabout/assets/id/assets_reserves>. > Of those securities, 78 percent had the top, AAA credit grade and 17 > percent were rated AA.**** > More Risk**** > > The survey of 60 central bankers, overseeing a combined $6.7 trillion, > found that low bond returns had prompted almost half to take on more risk. > Fourteen said they had already invested in equities or would do so within > five years. Those conducting the annual poll had never before asked that > question.**** > > “I definitely see other central banks doing or considering equities,” said > Jan Schmidt, the executive director of risk management at the Czech > National Bank in Prague <http://topics.bloomberg.com/prague/>, which has > built up stocks to 10 percent of its $44.4 billion in reserves since 2008. > Even so, the risks of owning shares are the same as ever, he said in > e-mailed comments.**** > > Currency reserves among the world’s central banks climbed by $734 billion > in 2012 to a record $10.9 trillion, according to > data<http://www.imf.org/external/np/sta/cofer/eng/cofer.pdf>from > the Washington-based International Monetary > Fund<http://topics.bloomberg.com/international-monetary-fund/>. > That’s about 20 percent of the $55 trillion market value of global stocks, > data compiled by Bloomberg show.**** > > Central banks’ purchases of shares show how the “hunger for yield” is > changing the behavior of even the most conservative investors, according to > Matthew Beesley, head of equities at Henderson Global Investors Holding > Ltd. in London <http://topics.bloomberg.com/london/>, which oversees about > $100 billion.**** > ‘Logical Move’**** > > “Equities are the last asset class standing,” Beesley said in a phone > interview on April 18. “When you have dividend yields in excess of bond > yields, it’s a very logical move.”**** > > Companies in the Standard & Poor’s 500 Index pay 2.2 percent of their > combined share price asdividends <http://www.bloomberg.com/quote/SPX:IND>, > compared with the 1.69 percent yield on 10-year Treasuries, according to > data compiled by Bloomberg.**** > > The S&P 500 (SPX) <http://www.bloomberg.com/quote/SPX:IND> closed at an > all-time high of 1,593.37 on April 11 and is up 11 percent this year though > April 23. Investors have earned 0.7 percent owning U.S. government debt > repayable in one year or more, according to Bank of America Corp. bond > indexes.**** > > Stocks are also cheap compared with government bonds using a valuation > method favored by former Fed Chairman Alan > Greenspan<http://topics.bloomberg.com/alan-greenspan/> that > compares earnings with interest payments. Companies in the S&P 500 > (SPX)<http://www.bloomberg.com/quote/SPX:IND> generate > profit equal to 6.4 percent of their share prices, about 4.7 percentage > points more than yields on 10-year Treasuries, Bloomberg data show.**** > Beyond Pale**** > > Even so, 70 percent of the central bankers in the survey indicated that > equities are “beyond the pale.”**** > > The growth in reserves has slowed as a strengthening > dollar<http://www.bloomberg.com/quote/DXY:IND> puts > less pressure on policy makers to intervene by selling their currencies, > data compiled by Bloomberg show. Central-bank assets grew by 1 percent last > quarter, the smallest gain since the same period of 2012, as Taiwan’s > reserves fell by more than $1 billion to $402 billion and > Singapore<http://topics.bloomberg.com/singapore/>’s > dropped by a similar amount to $258 billion.**** > > Some central banks, including the Fed in > Washington<http://topics.bloomberg.com/washington/> and > the Bank of England <http://topics.bloomberg.com/bank-of-england/> in > London, have no mandate to buy stocks directly. The Fed has $42.6 billion > in reserves and the Bank of England controls $65.1 billion, data compiled > by Bloomberg show.**** > > Other banks are deterred by price swings in equities that can be larger > than for other securities. The MSCI All-Country World Index > (MXWD)<http://www.bloomberg.com/quote/MXWD:IND> fell > 3.3 percent in five days after rising to a 4 1/2-year high on April 11 and > tumbled 11 percent in the five weeks through June 12 last year. The gauge > of global stocks rose 0.6 percent at 8:33 a.m. in New > York<http://topics.bloomberg.com/new-york/> > today.**** > SNB, Israel**** > > Among central banks that are buying shares, the SNB has allocated about 12 > percent of assets to passive funds tracking equity indexes. The Bank of > Israel <http://topics.bloomberg.com/bank-of-israel/> has spent about 3 > percent of its $77 billion reserves on U.S. stocks.**** > > In Asia <http://topics.bloomberg.com/asia/>, the BOJ announced plans to put > more of its $1.2 trillion of reserves into exchange-traded funds this month > as it doubled its stimulus program to help reflate the economy. TheBank of > Korea <http://topics.bloomberg.com/bank-of-korea/> began buying Chinese > shares last year, increasing its equity investments to about $18.6 billion, > or 5.7 percent of the total, up from 5.4 percent in 2011. > China<http://topics.bloomberg.com/china/>’s > foreign-exchange regulator said in January it has sought “innovative use” > of its $3.4 trillion in assets, the world’s biggest reserves, without > specifying a strategy for investing in shares.**** > ‘Pursue Yield’**** > > “Central banks are looking at assets that I wouldn’t have necessarily > expected in times gone by,” said Paul Price, London-based head of > international distribution and client relations at Morgan Stanley > Investment Management, which oversees about $338 billion. Low yields and > “movement in the ratings around certain sovereigns is forcing central banks > to rethink how they pursue yield and how equities are viewed in that > context,” he said.**** > > The yield on the benchmark 10-year U.S. > Treasury<http://topics.bloomberg.com/u.s.-treasury/> reached > a record low of 1.38 percent in July. The same month, German government > rates of similar maturity declined to 1.13 percent. France’s 10-year yield > retreated to 1.7 percent on April 23, the lowest level since Bloomberg > began tracking the data in 1990.**** > > “Government bonds remain a fundamental pillar of central- bank asset > allocation, but there is scope to go into other asset classes to help > provide a higher return,” said Massimiliano Castelli, head of strategy at > UBS Asset Management’s global sovereign markets unit in London. “We are in > a lot of discussions with several or so institutions who are considering > such a step.”**** > > ** ** > > **· **** ** > > i81CabrfaYGo.jpg > 18KViewDownload > > iR8VJ72nW7gg.jpg > 12KViewDownload > > i8kGNCRehjso.jpg > 13KViewDownload > > iABPIE5x9txk.jpg > 22KViewDownload > > image001.png > 19KViewDownload > > iCPY26VQEbGs.jpg > 15KViewDownload -- -- Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum * Visit our other community at http://www.PoliticalForum.com/ * It's active and moderated. Register and vote in our polls. * Read the latest breaking news, and more. --- You received this message because you are subscribed to the Google Groups "PoliticalForum" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/groups/opt_out.
