It's a self fulfilling trap. Everybody knows it's fake but everyone keeps buying because it's the only thing growing in ZIRP environment. Now they've concentrated everyone's wealth in a handful of fake valuation companies. What happens if there's a major correction? Same thing in reverse- everyone panic sells and trillions disappear
It's a self fulfilling trap. Everybody knows it's fake but everyone keeps buying because it's the only thing growing in ZIRP environment. Now they've concentrated everyone's wealth in a handful of fake valuation companies. What happens if there's a major correction? Same thing in reverse- everyone panic sells and trillions disappear