Saving the global economy will cost $ 834 million per hour for 18 months



For 18 months, the hourly rate is $ 834 million, according to Bank of America analysts, how much is central banks have spent to buy bonds since the start of the epidemic, with the Fed alone investing $ 4 trillion. It’s a number that reflects the huge flow of money that has kept companies viable in the middle blockages and fueled the biggest stock market rally in a generation.

With central banks absorbing much of the bond market and lowering lending rates, there is now over $ 16 trillion in debt with negative yields. And that’s one of the reasons fund managers think they have no choice but to keep buying stocks. For investors, the key question is how long central banks can keep the liquidity taps open.

Also read: As the global economy suffered a major shake in 2020, the top 10 billionaires added $ 1 trillion to their net worth

The wildcard can be the delta version. After the country entered a three-day lockdown, New Zealand’s central bank decided not to raise interest rates. However, as Bank of America said, “investors are not afraid of central banks.”

Saving the global economy will cost $ 834 million per hour for 18 months
(Content source – Commercial standard; Image – Commercial standard)

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Saving the global economy will cost $ 834 million per hour for 18 months

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That’s a number that reflects the huge influx of cash that has kept companies viable amid lockdowns and fueled the biggest stock market rally in a generation.

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TPT Information Office

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POLITICAL TIMES

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