There seems a mood of optimism, which is founded in reality, that the world economy will grow and continue growing and people will enjoy semblance of Prosperity, which is not very far.
Most of the Central Banks have been doing their bit in the quest for convergence of benchmark interest rates, evidenced by Australia and South Korea recently, something that the IMF was calling out for about two years ago.
Japan seems to have turned the corner from a stagnant to a dynamic economy, with its GNP likely to rise in the near future, with added investments in overseas markets. This should create spending power in those places for purchase of much-liked Japanese technology. This is a great positive sign, and the quantitative easing in Japan is feeding into the world economy, adding to consumption and growth worldwide. For nations like Portugal and Spain, Japan could bankroll their Recovery, that is one scenario.
The Fed Bank regional Presidents asking rhetorical questions as to how money feeds into the real economy, they know that the Main Road banks lending to small business owners and gangs of builders to buy and do up properties and such like will be the way forward, not to mention loans to young entrepreneurs who may not have physical collateral but have intangible assets and intellectual property to their names - such will be the Bill Gates and Steve Jobs of this new generation, and backing them will pay rich dividends in the near future as they explore new frontiers of the Digital Economy. I believe a whole new world is around the corner, with more leisure time for each and every one, and utilisation of the Internet in all its glory for making life easier and more enjoyable, for more and more people across the globe. You could even say, The good times have just started again.
The stockmarkets are likely to pause for breath now, but they seem heading up and that is a sign of faith of the investing public and the money managers. It is accumulation of wealth, which augers well.
So, the bankers know how the money gets to the real people, and by lending sympathetically and not only judiciously, they will be doing their bit. All prosper together.