3 ms·
>When the one year treasury yield gets back above 2%, we are leaving the easy money era. zero percent and negative interest are like a roach motel for investor
by nimbius 6y ago
>When the one year treasury yield gets back above 2%, we are leaving the easy money era.
zero percent and negative interest are like a roach motel for investors in 2021. no ones leaving anything.
in 2008 the fed introduced quantitative easing and by 2020 they'd never left it. the fed just..."decided" that they didnt want stocks to crash, ever, and increased the amount of liquidity in the market without thinking twice.
in 2010 they tried to ween the market off QE and were rewarded with an 800 point tantrum plunge. now its 2021, the feds 1993 crisis to real earnings (cheap credit) is now de-facto how most of American society runs. their 2008 stop-gap (QE) cannot be undone without a massive economic depression and every day hyperinflation looms on the horizon.
This means there is also no possibility of a minimum wage increase (doubling to $15)...ever, as no one knows if it would be good enough to trigger a collapse or not.
despite the furious protest of real-estate moguls many people see housing as a bubble, and when it pops, QE will not solve the problem a second time around.