HF Exec: “Is there just too much money in the world?”

Where has this cash come from with risk assets at the highs?

“Could it be ..the real thing that is driving markets is how much money is being created? “

-Fund CIO asks

Comment: Bubble Blowing is Back

In a financially driven economy, to keep things functioning smoothly, asset prices must be kept strong. By keeping them strong, the financial leverage that can be applied to those valuations keeps the gearing moving. More money is created based on those valuations.

To get those asset prices strong, and to keep them strong in a self-fulfilling prophecy sort of way, you need a high nominal GDP. High nominal GDP justifies the financial leverage, which inflate the assets which creates more money.