Having now passed the anniversary of the ‘rising dollar’, it is interesting to see the related and continued effects on the stock bubble(s). As should be obvious by now, stock buybacks, funded via corporate bonds and loosely categorized C&I loans, are responsible for the post-QE3 nearly uninterrupted rise. Repurchases are forming a separate ‘liquidity’ conduit, indirect leverage if you will, which has already started to fray. Various broader ‘market’ indices have diverged, starting with the Russell 2000 in early 2014 (with the economic slowdown that was supposed to be an anomaly of weather).
This post was published at Zero Hedge on 07/16/2015.
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