7 ms·

This could be the reason stocks have been going up ..despite double-digit unemployment. Decoupling from reality?

toomuchtodo 6y ago
https://www.reddit.com/r/wallstreetbets/comments/ghcfn5/dddd_the_20102020_liquidityfueled_asset_bubble/ https://www.reddit.com/r/wallstreetbets/comments/ghcfn5/dddd... (ignore the subreddit, it's actually an excellent analysis about how liquidity operations are inflating asset values)
- nytf3 6y ago
  this is a poor ripoff of Lyn Alden's work: https://www.lynalden.com/global-dollar-short-squeeze/ https://www.lynalden.com/global-dollar-short-squeeze/ (02/20/20) https://www.lynalden.com/great-depression/ https://www.lynalden.com/great-depression/ (03/12/20) https://www.lynalden.com/quantitative-easing-mmt-inflation/ https://www.lynalden.com/quantitative-easing-mmt-inflation/ (05/01/20)
  - toomuchtodo 6y ago
    Thanks for sharing, wasn't familiar with this body of work.
    - nytf3 6y ago
      No problem! Not much of a pedigree, but I think the articles stand by themselves.
- stx 6y ago
  I wonder what the US going into a deflationary spiral would mean for real estate like rental houses? When economists say deflationary spiral do they mean prices of assets (like houses) would fall?
  - mindslight 6y ago
    When economic priests invoke the deflationary spiral, they mean some ambiguous boogeyman that you're supposed to be scared of so they can keep printing money and handing it to the politically connected, as they're doing here. Deflation is the natural state of things, as we are continually figuring out how to be more efficient. We've had extreme deflation in the technology industry going on several decades, and the results have been fantastic. It is only a bad thing for the slavedrivers that want to keep everyone working full time doing fake jobs.
    - toomuchtodo 6y ago
      Underrated comment. Need a tech accelerator that is the inverse of the Fed, optimizing for minimum employment instead of maximum employment (one of the Fed's two mandates).
      - mindslight 6y ago
        Every accelerator, VC firm, corporation, division, manager, line worker, and homemaker is already optimizing for minimum employment. Human ingenuity at work - seeing patterns for where improvements can be made to ultimately achieve more. Even a guy laying on a couch watching football is trying to figure out how he can get another beer without having to get up. Then the Federal Reserve comes along, declares all of our progress problematic, and manipulates the currency we transact in to make our progress invisible to each other.
    - three_seagrass 6y ago
      Ignoring the appeal to nature, the tech industry has been extremely volatile for several decades. We're in the middle of a dot-com bust equivalent for the entire economy, because of natural forces, and it's not beneficial.
      - mindslight 6y ago
        The volatility is due to that cheap financial sector money, making nonsensical bets until the music stops. Big picture, we were definitely due to a correction. VCs were paying to litter the landscape with electric scooters, hoping to create some kind of recurring income stream from people renting inexpensive consumer goods. Slowing down is never beneficial to the individuals getting laid off, which is why these destructive policies enjoy broad support. If 90% of the work is required, and everybody is still expected to work the same full time, then 10% of people are left without chairs. Focusing on the first condition is the path to make-work. Focusing on the second condition is what we need to do instead.
kgwgk 6y ago
And also the reason why corporate bonds have been going up.
- francisofascii 6y ago
  Corporate bonds have actually been on a downward trend the past 30 days. Not sure why. But yes, they did recover from the panic days of mid-March. https://finance.yahoo.com/quote/LQD/ https://finance.yahoo.com/quote/LQD/
aeyes 6y ago
The stock market doesn't have much to do with what is happening today, it is what investors think these companies might be worth in the future.
rwmj 6y ago
It's very annoying for someone who has been waiting to buy into shares at a reasonable price. Just like house prices they are inflated beyond reality by government support, pricing out many people.

https://www.reddit.com/r/wallstreetbets/comments/ghcfn5/dddd_the_20102020_liquidityfueled_asset_bubble/ https://www.reddit.com/r/wallstreetbets/comments/ghcfn5/dddd... (ignore the subreddit, it's actually an excellent analysis about how liquidity operations are inflating asset values)

nytf3 6y ago
this is a poor ripoff of Lyn Alden's work: https://www.lynalden.com/global-dollar-short-squeeze/ https://www.lynalden.com/global-dollar-short-squeeze/ (02/20/20) https://www.lynalden.com/great-depression/ https://www.lynalden.com/great-depression/ (03/12/20) https://www.lynalden.com/quantitative-easing-mmt-inflation/ https://www.lynalden.com/quantitative-easing-mmt-inflation/ (05/01/20)
- toomuchtodo 6y ago
  Thanks for sharing, wasn't familiar with this body of work.
  - nytf3 6y ago
    No problem! Not much of a pedigree, but I think the articles stand by themselves.
stx 6y ago
I wonder what the US going into a deflationary spiral would mean for real estate like rental houses? When economists say deflationary spiral do they mean prices of assets (like houses) would fall?
- mindslight 6y ago
  When economic priests invoke the deflationary spiral, they mean some ambiguous boogeyman that you're supposed to be scared of so they can keep printing money and handing it to the politically connected, as they're doing here. Deflation is the natural state of things, as we are continually figuring out how to be more efficient. We've had extreme deflation in the technology industry going on several decades, and the results have been fantastic. It is only a bad thing for the slavedrivers that want to keep everyone working full time doing fake jobs.
  - toomuchtodo 6y ago
    Underrated comment. Need a tech accelerator that is the inverse of the Fed, optimizing for minimum employment instead of maximum employment (one of the Fed's two mandates).
    - mindslight 6y ago
      Every accelerator, VC firm, corporation, division, manager, line worker, and homemaker is already optimizing for minimum employment. Human ingenuity at work - seeing patterns for where improvements can be made to ultimately achieve more. Even a guy laying on a couch watching football is trying to figure out how he can get another beer without having to get up. Then the Federal Reserve comes along, declares all of our progress problematic, and manipulates the currency we transact in to make our progress invisible to each other.
  - three_seagrass 6y ago
    Ignoring the appeal to nature, the tech industry has been extremely volatile for several decades. We're in the middle of a dot-com bust equivalent for the entire economy, because of natural forces, and it's not beneficial.
    - mindslight 6y ago
      The volatility is due to that cheap financial sector money, making nonsensical bets until the music stops. Big picture, we were definitely due to a correction. VCs were paying to litter the landscape with electric scooters, hoping to create some kind of recurring income stream from people renting inexpensive consumer goods. Slowing down is never beneficial to the individuals getting laid off, which is why these destructive policies enjoy broad support. If 90% of the work is required, and everybody is still expected to work the same full time, then 10% of people are left without chairs. Focusing on the first condition is the path to make-work. Focusing on the second condition is what we need to do instead.

kgwgk 6y ago

And also the reason why corporate bonds have been going up.

francisofascii 6y ago
Corporate bonds have actually been on a downward trend the past 30 days. Not sure why. But yes, they did recover from the panic days of mid-March. https://finance.yahoo.com/quote/LQD/ https://finance.yahoo.com/quote/LQD/

aeyes 6y ago

The stock market doesn't have much to do with what is happening today, it is what investors think these companies might be worth in the future.

rwmj 6y ago

It's very annoying for someone who has been waiting to buy into shares at a reasonable price. Just like house prices they are inflated beyond reality by government support, pricing out many people.