lsayre wrote:Can a central bank even exist without distorting what are intended to be markets for honest price discovery?
Don’t know. Very broad question. Make it the subject of your PhD dissertation and get back to me.
lsayre wrote:… post 2008, with up to tens of $trillions of excess liquidity fabricated from thin air, and with massive interest rate suppression, can the case for correlation between central banks intervention and market valuation distortion be made even more strongly?
Wasn’t that the whole point of the intervention, to improve the economy? And now you are complaining that it worked? Economic improvement naturally helps the stock market. Your phrase “market valuation distortion” seems to imply that “distortion” is by nature bad. When I had pneumonia, antibiotics caused a health distortion in my body by killing off the bugs before they killed off me. Sometimes we WANT distortion.