Might be some catalysts for an explosive move coming from Jackson Hole, where they are going to discuss unwinding some of their gigantic balance sheets. The Central Bankers have $US400 trillion worth of financial assets tied to the unwinding decision .... an they are wondering what to do.....
Central bankers get together to discuss their $US400 trillion problem
By business reporter
Stephen Letts
Posted about 7 hours ago
PHOTO: The Fed's Janet Yellen and ECB's Mario Draghi will deliver keynote addresses on Friday. (Reuters: David Stubbs)
The gathering of the world's major central bankers at the Jackson Hole retreat in Wyoming could also be characterised as meeting of the world biggest and most influential fund managers.
Key points:
- G4 central banks' balance sheets have grown to $US14 trillion since 2008
- Unwinding their asset buying programs while maintaining financial stability will be a focus of the Jackson Hole meeting
- Macquarie estimates around $US400 trillion worth of financial assets tied to the unwinding decision
Together the G4 group — The Federal Reserve, European Central Bank, Bank of Japan and Bank of England — have amassed $US14 trillion of assets in the past few years.
Throw in the People's Bank of China and it is closer to $US19 trillion.
The expansion of central banks' balance sheets is even more extraordinary given they collectively held less than $US6 trillion in 2008.
The bank bosses would like to get out of the market and that poses some very genuine and large risks not only to global markets but also the global economy.
"We can't see how central banks can tighten and avoid dislocating (around) $US400 trillion of incessantly interacting financial instruments," Macquarie's strategy team wrote in a sobering note.
http://www.abc.net.au/news/2017-08-24/jackson-hole/8837718
https://www.theguardian.com/busines...-to-jackson-hole-for-signs-of-how-qe-will-end
http://www.financialsense.com/fs-st...re-amid-rich-valuations-removal-accommodation
good luck all...
