But equity markets can't drop significantly. It's like betting the wheels of your BMW 760 limousine are going to fall off the car spontaneously on the parkway. Markets are financially engineered entities with known mathematical relationship properties revolving around growth rates and interest rates. Pure and simple. Those rates are future forecasts, making them particularly amenable to powerful positioning of opinion.
Ben has set the floor of these equity markets only a few percentage points from their ceiling. Its like a cockroach making his way up to the top of the Empire State building, he isn't going to fall more than a floor.
Its the expression of ultimate power that all the world's wealth believes in the mechanics of interest rates as infallible tells of future prosperity.
The wheels came of the BMW in 2008. Bens QE is like putting the doughnut spares on all 4 wheels and racing down the freeway without a care in the world. Never mind all that smoke, everything is just fine.