The US markets are 100% driven by the fed, have been for years now. Most of the large companies have been buying back their own shares, with borrowed money. Kind of like a snake eating it's own tail. These absurdities only function on the assumption of super low interest rates, which we've had for almost 14 years now. Now after firing the biggest monetary bazooka in history during covid to bail out the entire system, inflation is raging. In order to save the dollar and quell inflation they must raise rates. The problem is raising rates will pop the everything bubble, and we'll get a huge recession as a consequence.
The US markets are 100% driven by the fed, have been for years now. Most of the large companies have been buying back their own shares, with borrowed money. Kind of like a snake eating it's own tail. These absurdities only function on the assumption of super low interest rates, which we've had for almost 14 years now. Now after firing the biggest monetary bazooka in history during covid to bail out the entire system, inflation is raging. In order to save the dollar and quell inflation they must raise rates. The problem is raising rates will pop the everything bubble, and we'll get a huge recession as a consequence.
Well said- add on top the terminal demographic decline and we see the a deflationary inevitability
...without which, the only line in the Federal Budget will be "interest on the national debt".