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Everything is being forced further out on the risk curve. Everything. This also explains wacky basketcase unicorns like WeWork, perpetually unprofitable compan
by api 6y ago
Everything is being forced further out on the risk curve. Everything.
This also explains wacky basketcase unicorns like WeWork, perpetually unprofitable companies raising round after round, the continued existence of the cryptocurrency world in spite of it being like 90%+ scams, real estate going up in cities where >25% of people are behind on their mortgages, etc. There's no "alpha" anywhere. Money is chasing its tail.
All this QE is just going to give us is more asset bubbles. The financial economy is completely detaching from the real economy and becoming a pure fantasy LARP for the rich and of course governments.
- willcipriano 6y agoMy guess is when the financial economy goes bust and those dollars start chasing real economy assets all the inflation we were assured wouldn't happen due to all the money printing will happen all at once. People act like the big short guys were geniuses to see this trend come out of nowhere. I was a teenager asking questions like "How can housing prices rise nationally at a multiple of wage increases for any sustained period of time?" and was short down by the "smart money" on forums not unlike this one.
- Apocryphon 6y agoRelevant read: How Zero-Interest-Rate Policy explains the world https://themargins.substack.com/p/zirp-explains-the-world https://themargins.substack.com/p/zirp-explains-the-world