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Market corrections are natural and useful. Every time we print huge sums of money to rescue equities and make debt cheaper, who benefits? Those with a high rat
by lend000 6y ago
Market corrections are natural and useful. Every time we print huge sums of money to rescue equities and make debt cheaper, who benefits?
Those with a high ratio of assets/credit to living expenses.
While market corrections create a higher degree of short term pain, allowing them for the last five decades would have gone a long way in preventing the increase in wealth inequality.
It doesn't make sense that investing in SPX is a guaranteed long term 10%/annum investment while nominal GDP growth is under 3%. It's an engineered phenomenon and benefits those who already have a lot of assets.