The US stock market is in the biggest bubble in history. The entire economy is at risk.
The US stock market is in the biggest bubble in history. The entire economy is at risk.
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54 comments
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I feel like people have been saying this since 2016
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The Fed keeps pumping money in to prevent a crash. In doing so, they have been priming the economy for a depression era type crash, but they don't know what else to do. You can thank Obama. He could have bailed every day Americans out, and reset the economy in the process. But no, he saved his banking friends.
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If the fed keeps pumping money in to prevent a crash, what’s to say they aren’t going to continue to do that?
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As I understand it, quantitative easing is supposed to be viewed as an emergency measure that states use for temporary relief when the markets go into the negative to avoid everything spiraling into a recession. The US is just using QE all the time as a base stimulus, which means they can't use it in an emergency.
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Yup. QE and also loaning tons of money to banks to prevent runs and failures. Stuff that doesn't get talked about much in MSM.
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Imagine a burger:
"Hey Bank-chan, I have this idea for a restaurant that sells balloon animals. I think I'm going to charge $12 for a burger+balloon combo. Can I have 30,000,000 of the new money to do it?"
"Sure, Slimeball-kun. Here you go!"
Nobody has enough money to buy stupid borger
"Hey Bank-chan, I'm declaring bankrupcy. you're only getting $2,000,000 back on the investment"
"But you and 99999 other people were supposed to make me profit!"
Local news: "Your local bank is freaking out"
"Oh holy shit, get my money out of that bank!" x9,999,999
"Omg I don't have enough money if 9999999 people withdraw their savings"
bank run
bank collapses
nobody can make any businesses
feds try to step in... again
Only this time nobody wants to buy the dogshit bonds because BRICS is trying to divest. B&RI is using USD as toilet paper
"Idk, maybe raise taxes 88% on the lowest 25% of Americans?" - Elon Mu$$k
lowest 25%-sama can't afford food
also that real estate bubble that was giga overdue happens because of the week-decade thing
cool zone begins
Meanwhile China enjoys a functioning, self-sufficient economy because they are capable of doing anything
I imagine it's something like that.
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The only way out (other than compete collapse) is going back to 1940s taxes where the rich were paying 90% after a certain threshold and, uhh, gestures broadly at the state of US politics
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Barely. Even if the US met its spending through gigataxes, the taxes would go towards genociding teenagers, chauvinistic enforcement of the petrodollar, corporate buybacks, R&D on planned obsolescence, political ads, and recruiting troops.
I can think of a third, much more sinister way our of a capitalist pinch
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That would have to come after complete collapse. There's no left movement in the US that could overthrow the government.
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a third way, eh? :)
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Fascism!
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Yep, we've essentially been in emergency mode for years now
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As I understand it, quantitative easing is supposed to be viewed as an emergency measure that states use for temporary relief when the markets go into the negative to avoid everything spiraling into a recession. The US is just using QE all the time as a base stimulus, which means they can’t use it in an emergency.
Well, they raised interest rates throughout 2022 until basically the end of 2023, where it topped out at 5.33. It's dipped about a percentage point now, to 4.48 [1]. So there is some room to keep playing the QE game, in theory. Granted, QE and the FFER aren't a causal relation here; just a correlation. Lots of folks thought that near-zero or zero interest rate policy would kill the dollar back in the 2007-2008 global financial crisis, but so far, the dollar is still around. Maybe additional QE would kill the dollar. Maybe it won't make a difference. I honestly don't know enough to have an educated guess.
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Events outside of their control.
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So I want to clear something up, the Fed is not and has not done quantitative easing for years (since 2022). Right now they're actually doing quantitative tightening.
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It's kind of a game of hot potato. Nobody wants to be stuck with the big crash, so they use whatever tools they have to kick it down the road so it becomes a problem for the next admin. Thing is that you can't keep doing that indefinitely because the fundamentals continue to deteriorate. All that accomplishes is to ensure that the crash will be bigger and more profound when it hits.
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Honestly it would be pretty funny if it does crash under Trump because he's supposed to be the epic "knows how the economy works because businessman" president for chuds, but they'll probably blame it on Biden's policies or whatever
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To be fair, they're not going to be wrong exactly. :)
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We never recovered from 2008, I’d say.
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2008 never ended economically and 2016 never ended culturally.
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That’s an interesting way of saying it that I’ve never considered, or heard before.
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yep same story in Europe the "recovery" never happened just pure stagnation since then of shit that actually matters to normal people like real wages
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Yet people point at how well the stock market is doing and say “the economy is very healthy”. It’s infuriating.
I think that minimum wage is going to become the national average…given the rate it is increasing in the U.K., but other roles wages isn’t.
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and the bubble's been getting bigger the whole 9 years
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People have been saying this for your entire lifetime.
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this can keep going until people liquidate their assets, its exactly like how cryptocurrencies still go strong even after thousands of scams, people keep pumping money into it and with stocks it happens that retirement plans go directly into pumping stocks.
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54 comments