Z
Zzyzx_Road
Guest
An awful lot of funny money since 2009. Even more this year. Never before seen zero interest rates. Don’t cry for the 1% they got theirs. The 10% mostly did ok too if they kept their 401k’s, 403b’s and IRA’s. All that funny money funds the wealth transfer from us to them. Last time that happened we got the beginnings of the progressivism that is now bringing us to a cancel-based culture to mask its own failures. Where to from here? Your guess is as good as mine.
For the rest of us, they can print money, but they can’t print the economy. Those empty storefronts? They can’t be printed back into existence, there is no abracadabra for that and I don’t care how many MMT fans wave their hands and tell me I’m not getting it. This lockdown was bad to ruinous for many not in the upper quartiles. Witness the food bank lines, the modern day equivalent of the bread lines of the 1930’s.
Thank goodness the Fed have not delved into negative rates as the ECB has. No private party is foolish enough to buy a negative rate bond unless they can find a greater fool to buy it from them for a capital gain. So the ECB is now the sole market for that paper so the next step they’re contemplating is the cancellation of hard currency. Could that come here? I keep saying this won’t end well, but to quote Keynes, the insanity can last longer than one can remain solvent.
One more: the absurdly low interest rates staying so low for so long have killed the pensions both here and in Europe. Many public pensions here have gotten in trouble in recent years and are now expecting Biden to bail them out. No good will come of that as the proper lessons that needed to be learned from the pension debacles will never be learned. So that has been another factor in Dow 30,000, the pensions being forced to buy more securities or engage in other questionable investments that I might fire my adviser for.
More popcorn, please.
For the rest of us, they can print money, but they can’t print the economy. Those empty storefronts? They can’t be printed back into existence, there is no abracadabra for that and I don’t care how many MMT fans wave their hands and tell me I’m not getting it. This lockdown was bad to ruinous for many not in the upper quartiles. Witness the food bank lines, the modern day equivalent of the bread lines of the 1930’s.
Thank goodness the Fed have not delved into negative rates as the ECB has. No private party is foolish enough to buy a negative rate bond unless they can find a greater fool to buy it from them for a capital gain. So the ECB is now the sole market for that paper so the next step they’re contemplating is the cancellation of hard currency. Could that come here? I keep saying this won’t end well, but to quote Keynes, the insanity can last longer than one can remain solvent.
One more: the absurdly low interest rates staying so low for so long have killed the pensions both here and in Europe. Many public pensions here have gotten in trouble in recent years and are now expecting Biden to bail them out. No good will come of that as the proper lessons that needed to be learned from the pension debacles will never be learned. So that has been another factor in Dow 30,000, the pensions being forced to buy more securities or engage in other questionable investments that I might fire my adviser for.
More popcorn, please.
