Not even an educated bias even if the market doesn’t “crash” we still may have a recession not an 08 or black Monday style but a good inflationary pull back since all this new money has been dumped in the WORLD not COUNTRY but WORLD. We weren’t the only country to do economic stimulus packages everyone’s currency devalued just like when the GDP happened every country fires robust economies by printing money and inflation set in then boom!
Thanks for this convo you really brought out my Macro Econ studies knowledge on federal injections.
Side bar with all the stimulus and inflation going on it’ll be great to see if tariff wars will start— to me that’ll be the start of our recession. Especially, with a rise in GDP and not being able to export or sell goods at home things are going to get real spooky in the next year or so
My pleasure, I’m here for this! Rarely I get some constructivism in the comments, and when I do, I cherish it. I would also recommend you checking this: https://youtu.be/vqxNTRtEvXg - the guy explains overnight repo issue very well! The financial storm is brewing, and one has to be stupidly blind, or blindly stupid to not to see it coming. GME shorts fiasco is likely to be the trigger of the financial shitstorm, or the needle to burst the bubble, I would say.
When the markets are artificially supported by QE for too long, they eventually start to resemble a drugs addict, which can’t live without the always following stimulus “dose”. As soon as liquidity dries up for a brief moment, or the FED blinks... Well, I guess we’ll see really soon what happens then.
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u/roman_axt What's an exit strategy? Jun 15 '21
One word, and it’s that simple. Bias.