Is the Portfolio Rebalance Channel in the Human Brain?

The idea that central banks are responsible for all market outcomes is now well and truly implanted in the human brain, says Epsilon Theory. If Bernanke was right about the Portfolio Rebalance Channel on the way up, he's going to be right about it on the way down. The safest house's US Treasury buyer has to buy mortgages to get the same return as before. It will be turtles all the way up as all investors are forced to take on less risk than they otherwise would.