By bailing out banks and targeting equity prices, the central banks are exacerbating the misallocation of savings/financial capital to historically overvalued corporate equity.
What happens when central banks make credit cheap and abundant? All that cheap money chases scarce productive assets. The yields on assets drop, and speculative “risk-on” assets are boosted into bubbles.
Even as corporate profits have skyrocketed, equity valuations have risen apace, keeping yields at historically low levels.