I am no economist, but from what I understood, what’s happening is that central banks have been pumping cash into the economies since the 2009 crisis. They were

I am no economist, but from what I understood, what’s happening is that central banks have been pumping cash into the economies since the 2009 crisis. They were starting to end this when covid happened, so they reverted course and kept pumping. What happens when the money supply is high is that banks can then grant cheap loans to people or institutions who are solvable. So they give loans to already rich entities who then invest into all kinds of stuff. The idea behind pumping cash into the economy is that the cash eventually flows into financing actual real world activity. And it actually works, the crises happened but the economy recovered fast. But a side effect is that a lot of that cash also goes into raw speculation. crypto, real estate, collectibles. And because so many people are doing it, it creates a bubble which means more people and more cash go into these up-spiraling dreams. But yes at some point money will get tighter, cheap loans will have to be repaid, and the bubbles will deflate. Hopefully inflation and taxes on capital would erode all those wins and life will go back to “normal”. But yes that’s optimistic and we’re talking at least 20 years.