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Israeli Central Bank to Use Its Reserves to Buy US Equities

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Jesse’s Café Américain
March 1, 2012

Not even bonds yet, but stocks?

It makes sense that some Central Banks have started to buy in the stock markets for private corporations. After all, central banks have always held the debt of their sovereigns, and this is just the reality of corporatism.

It is hard to figure out who might be more upset about this story: the US stock bears, or the Israeli taxpayers.

Well, Stan Fischer, the Governor of the Bank of Israel, was Ben Bernanke’s mentor at MIT. Maybe he is just helping?

This adds a new dimension of flexibility to the Fed’s swap lines with foreign central banks.

Can you say ponzi scheme, bubbe? תוכנית פונזי

I know it’s over when the fat lady sings, but the cantor?

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