3 ms·
The markets seem to be priced with lots of 'hopium' and Federal Reserve dollars propping them up. Assets have been overvalued by a lot for quite sometime now.
by Aloha 7y ago
The markets seem to be priced with lots of 'hopium' and Federal Reserve dollars propping them up. Assets have been overvalued by a lot for quite sometime now.
- CalRobert 7y agoOnly 11-12 years ago the Federal government propped up many companies that were poorly run and would have died without assistance by robbing taxpayers and giving the money to said companies. If you view ownership of said failing companies as a way to get on the Fed gravy train it makes sense. They're not even "overvalued" if that's how you look at them. How many people who would have started new, competing companies went on to have their taxes fund the competition?
- kortilla 7y ago> by robbing taxpayers and giving the money to said companies ... as loans, which had to be paid back with interest (and were).
- attilakun 7y agoIf the loans came from money printing then the taxpayer still paid for it by having their savings inflated away, albeit not the full amount.
- jcbrand 7y agoIt's not only via loans. By pushing down interest rates via QE, the Fed has allowed so-called zombie companies to exist longer than they otherwise would have in an unmanipulated interest rate environment.