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To: Andy from Chapel Hill
They borrowed six trillion dollars into existence - it has to go somewhere. Right now, that somewhere is US equities and real estate. When evaluating a market crash, you have to ask - crash against what? I don't see assets "crashing" in dollar terms because there are simply too many dollars out there for the currency to suddenly be worth hoarding.

Some asset classes could suffer a relative crash - meaning they increase in value at a slower rate than inflation. If housing goes up 5% in an environment of 10-15% inflation, it can be said to have "crashed" - but the house is still worth more next year than it is today.

The risk factor for equities is that most of the indexes and mutual funds are dependent on the same few stocks: Google, Microsoft, Apple, Facebook, Tesla, etc. An economic crisis impacting these stocks could have a broad negative effect on fund values, but remember - the Fed has already proven it will defend the inflated values of these particular quasi-governmental entities to the death. They are proxies for the overall economy, and the Democrats don't want to mess with their own Golden Geese - even if they seem gleeful about wringing the necks of Main Street's.

I suspect this crash will leave asset values about where they are - but raise the prices of consumer staples to intolerable levels. A year from now, measured in Corn Flakes, your house and 401(k) may be worth half of what they were - measured in dollars, their values may well be higher.

52 posted on 07/24/2021 8:14:42 AM PDT by Mr. Jeeves ([CTRL]-[GALT]-[DELETE])
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To: Mr. Jeeves

The problem with the rigged market is that .gov can allow some assets to crash and support others—and there is no way to know in advance which is which.

I prefer gambling at the casino (or at least I did before the mask mandates).

Buy stuff you can touch and see—stay away from paper anything.


59 posted on 07/24/2021 8:28:48 AM PDT by cgbg (A kleptocracy--if they can keep it. Think of it as the Cantillon Effect in action.)
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To: Mr. Jeeves

Agree 100% with this comment.


90 posted on 07/25/2021 4:23:03 AM PDT by rb22982 ( )
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