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To: entropy12

The stock market crash is unavoidable. It can be postponed with low interest rates, but it can not be cancelled.

...

That depends. Just about every stock market crash in modern times has followed the Fed inverting the yield curve. If they can raise rates without going so far as to invert the curve a “crash” can be avoided.


14 posted on 09/13/2016 8:46:30 AM PDT by Moonman62 (Make America Great Again!)
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To: Moonman62

In 200 year history of stock market, crashes have occurred regularly to correct excesses. Like I said, crash can be postponed but impossible to change laws of economics or physics.


16 posted on 09/13/2016 8:48:15 AM PDT by entropy12 (HilLIARy for Prison 2016)
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To: Moonman62

Also note that the longer they try to postpone the inevitable correction of excesses built up, the more violent the crash will be.

Anecdotal example...I just sold our condo in WA state, and the buyer is getting an FHA insured loan with 3.5% down, and paid top price for the condo. If that is not excessive leverage, I don’t know what is. If interest rates go up or the buyer loses his job, who gets caught holding the bag?


18 posted on 09/13/2016 8:53:10 AM PDT by entropy12 (HilLIARy for Prison 2016)
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