Would this article be published if TSLAs market cap was 1billion instead of ~ 50 billion.Of course not.TSLA is much less a story of innovation and technology and much more one of a stock where rampant speculation resulting
from Central bank liquidity has pushed its stock to levels completely unrelated to its prospects as a company.Its silly stock market valuation allows it raise cash to keep the charade going much longer than the economics of its business would ever suggest.
Not exact matches
Chinese officials might be trying to drain
liquidity from their economy but the
central bank remains fearful of raising interest rates.
COPENHAGEN, Sept 28 - Danish
banks drew 37 billion Danish crowns on Friday
from a three - year lending facility offered by the
central bank to help boost their
liquidity and get them off state aid.
The European
Central Bank (ECB) stopped all payments by one of Latvia's largest lenders on Monday, after its
liquidity position collapsed in the wake of allegations
from U.S. authorities.
If, on the margin,
liquidity begins to decline in 2018 resulting
from QT, fed rate hikes and other
central banks ending their QE programs, there is a reasonably high probability that risk assets will suffer.
The risk of volatility spikes and
liquidity shortages is rising, and it could get worse with new «quantitative tightening» policies
from central banks.
Joseph Stiglitz recently acknowledged that instead of helping the global recovery, the «flood of
liquidity»
from the Fed and the European
Central Bank is causing «chaos» in foreign exchange markets.
So Bernstein concludes that «the crypto - bubble will continue until the Fed and other
central banks remove too much
liquidity from the economy, the availability of «greater fools» decreases, and the bubble deflates.»
The 2008 financial crisis saw interest rates in the UK fall to historical lows of 0.50 percent in March 2009, as the
central bank went all out to help the UK economy recover
from the global
liquidity crunch.
We also need to remember that in the
central bank driven monetary expansion
from 2009 to present, it has been estimated that close to $ 4 trillion in
liquidity flowed into emerging markets in the hunt for higher returns.
This is a break
from recent years, when many asset classes rode a wave of
central bank liquidity and moved in near lockstep.
A drip - feed of
liquidity from the ECB and Greece's
central bank has kept lenders afloat.
Will organic private sector growth drivers and budding fiscal policy take the baton
from heretofore gushing
central bank policy
liquidity?
She believes current investment risks stem
from a myriad of issues:
central banks starting to take out
liquidity, interest rates starting to go up, more uncertainty in regards to economic numbers, tensions with growth, returning inflation and macroeconomic uncertainties.
Uppermost in investors» minds are considerations like stretched stock valuations, weaning of monetary policy support
from central banks and emerging market
liquidity strains.
A form of monetary policy used by
central banks to increase the money supply by buying government securities or other securities
from the market to
liquidity.