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Sorry, Central Banks: Risk And Volatility Cannot Be Extinguished

Submitted by Charles Hugh-Smith via OfTwoMinds blog, Central bank market intervention doesn't extinguish risk--it simply transfers it to the system itself. The unspoken claim of central bank policy is that risk can be extinguished by intervention/manipulation: once the Fed has your back, i.e. is supporting the market, risk disappears, and the easy profits flow to those who buy the dips with supreme confidence in the Fed's ability to magically turn risk-assets into risk-free assets.
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