I read this years ago having spent a couple decades on Wall Street trading derivatives basically my whole life. It was published first as an article in ZeroHedge and caught my attention.
Synopsis/Theory: Companies have issued cheap debt, turned around with the cash and bought their own stocks pushing up prices (enriching themselves with stock options and grants) since the last crisis because monetary easing allowed them to do so. This creates a synthetic short on volatility (basically erasing the risk of downside synthetically) and the entire market will crash some day because of it.
I firmly believe this will happen once stocks start ripping back and forth violently - likely as the economy falters from COVID and new policies. The only question is when? I’ve been waiting for years, but it should happen some day.
I'd highly recommend this guy's videos https://www.youtube.com/c/BestEvidence/videos
heres his one on quantitative easing https://www.youtube.com/watch?v=rDtVABEzcy4&t=207s
and yeah, the fed injected 3 trillion reserve currency into the economy last year... very similar to the amount that billionaires wealth increased (3.9 trillion or so)
JT is great, watch all his videos, good nuggets of understanding in each
I’ll check them out. The easing is what blew up subprime in 2007, not sure why they think it’s not going to blow up the next asset bubble. Problem is it’s going to take some kind of disruption (a bad set of trades, policy seen as negative, etc.) to make it happen. We may simply see real inflation and fed policy kick it off, but it’ll probably start in the credit market and move to the equity market.
Probably after an unexplained run up where large holders get squeezed (sounds familiar)? Reference weimer, japn, .com