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The bubbles they lament are caused by the Federal Reserve's subsidy of debt. All that extra liquidity does not flow evenly through the economy; it flows faster
by stretchwithme 16y ago
The bubbles they lament are caused by the Federal Reserve's subsidy of debt. All that extra liquidity does not flow evenly through the economy; it flows faster into those areas that have been rising, buoying the returns of earlier investors and creating an even steeper price increases.
And this will continue until everyone that could possibly buy in finds they find no one to sell to.
Granted such a pattern is inevitable to some degree, but all this hot money, which we all pay for indirectly through inflation, blows them all out of proportion.
- stretchwithme 16y agojeez, my grammar sucks sometimes
- drusenko 16y agoModerate inflation is actually a good thing. Without inflation, there is no reason to invest your money -- the incentive is to hoard wealth, like in the Middle Ages.