Posted on 03/17/2021 5:18:56 PM PDT by entropy12
>>With some much debt, it seems to me that the Fed can’t raise interest rates without bankrupting our country.<<
Bingo...post of the day.
They are trapped between a rock and a hard place. Rising interest rates to put the brakes on inflation/hyperinflation will cause the national debt to rocket.
$30 Trillion debt, $160 Trillion unfunded liabilities. Debt is now larger than our economy and growing.
https://www.usdebtclock.org/
Ok...like what? Gold, silver?
Which hard assets? I am a super senior and know nothing about owning rental real-estate, land, precious metals etc. I will probably buy the wrong stuff and most hard assets are not easy to sell. I will take my chances playing ups and downs in stocks.
I don’t get nuts with it, but I do purchase fractional gold and silver. Not for investment sake, but as hard currency in the event the dollar collapses in value.
Growing number of states are passing laws making gold and silver currency once again. Texas has just created a precious metal depository as well.
I think some of these more conservative states are seeing the writing on the wall and getting out ahead of financial crisis.
FED reminds of the old adage “holding tiger by the tail, you can’t let go because the tiger will devour you”.
FED is under the delusion that they can maintain a smoothly growing economy for ever. In that effort, they have created a giant and ugly bubble in stocks & hard assets. Economy works best when allowed to self correct. Occasional recessions serve to bankrupt unproductive entities. Instead FED+Treasury are trying to prop up everything.
Any black swan event is now capable of crashing the bubble. Covid did that in March 2020. There will be another coming sooner or later.
The market is at least 20% foam. Look at PE ratios. It’s getting inflated printed money flowing into the system.
Same with crypto, it inflated 1.6 TRILLION in less than one year!
>>Covid did that in March 2020.<<
That was very short lived. Bounced back pretty quick.
We’ve not entered a bear market in quite a while.
It was long enough (several weeks) to load up on almost any stock. SP500 was down under 2300. Now close to 4000. That is 74% gain in 12 months.
I still don’t understand why crypto has value. What is backing it up?
Faith.
All the more reason to buy stock. Inflation will devour your wealth otherwise.
Nothing ventured, nothing gained.
Faith that a bigger fool will come along and drive the price higher.
Send it to me!
...just kidding. But you COULD donate to FR
The Dow is irrelevant. S&P 500, Nasdaq and Russell 2k are far better representative of the market. But the reason for the market going up is the Fed Reserve and massive federal government spending. Bondzilla could crash it though and S&P 500 and Nasdaq are down this AM.
Hyper inflation means the stock runs continue as well as real estate. Inflation adjusted will be negative returns but obviously far better than sitting in the bank making 0.01%
Treasury yields continue to surge. Im probably wrong, but just don’t have the stomach for the stock market at current level.
Or real estate, anything that holds or increases in value.
With the way the markets are inflated, buying stock would almost be like day trading, you’d have to be ready to sell right away.
Silver (Eagles) shouldn’t be that hard to buy just need to find a credible dealer.
In that respect the inflated stock market is the same as crypto right now. Look at PE ratios, they are way out of whack, and non-existent for speculative stocks like GME and many others. When solid fundamentals aren’t there, people are buying on faith, hoping bigger fools come along and drive the price higher.
Biden’s tax increase package is leaking out now, why is the market foaming higher? There has to be a correction.
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