What does it indicate when i hear " the inner dune puts change into stock souk." where on earth does it walk?
Answers:
Central bank don't "put cash" into the stock souk.
Central bank put money into the "economy". Central bank control the flow of dosh. They do this by "lending" money to their associate bank. The bank consequently lend the money to businesses.
What the Fed did over the ultimate few days be to inject dosh into the discount by repurchasing gov't bonds (know as repo's) from the bank so they would own the liquidity to lend. The market are going crazy because of the shortage of funds surrounded by the market.
It method that they enjoy invested some of their soft assets into the form of stocks.
Central bank are giving loans to private bank surrounded by their countries.
Private bank involve this money to discharge panic investors who are withdrawing their money from funds which hold significant investments in mortgage loans.