Where Have We Seen This Before: Hungary Central Bank Will Prop Up Economy By Boosting Stock Market
by Tyler Durden
ZeroHedge.com
03/09/2016
While most western central bankers are slowly, if grudgingly, admitting that everything they have done since the start of the “most hated rally in history” has been to create precisely this rally (also explaining why it remains so deeply “hated” as none of it is in any remote way natural) at least in Hungary they are dead honest from the onset, that when it comes to propping up the economy it all starts (and ends) with the stock market.
According to Reuters, the Budapest stock exchange, now majority-owned by the central bank – just a few conflict of interest there – approved a new strategy on Wednesday to boost new listings and attract new investors, helping the government’s efforts to buoy the economy.
The National Bank of Hungary, run by Prime Minister Viktor Orban’s close ally Gyorgy Matolcsy, bought a majority stake in the stock exchange in November, in a move seen as another state attempt to help prop up the economy. Actually, what the move does is provide the implicit guarantee of the central bank to risk assets, something that has been explicitly or implicitly the norm across most other countries for the past 7 years.
The Rest…HERE
