5 ms·
That’s just finger waving. The main cause is the madness of the situation where a deadly global pandemic causes the money supply to increase across all sectors.
by flyinglizard 5y ago
That’s just finger waving. The main cause is the madness of the situation where a deadly global pandemic causes the money supply to increase across all sectors. If you were a manufacturer in March 2020, the only responsible thing was to reduce operations to the bare minimum.
Add lockdowns and changing, unpredictable consumption patterns (e.g buying more cars against all predictions because who wants public transport now?) and you get the perfect storm.
You could hold a years worth of inventory and you’d still have a problem.
- erosenbe0 5y agoCorrect. The Fed is holding huge amounts of assets artificially boosting stocks and both corporate and govt. investment, creating a housing bubble and wealth inequality as a tradeoff to keep unemployment low. Combined with the government 'stimulus.' School districts and municipalities with millions to spend for several years into the future. Why would we expect there to be a perfect equilibrium immediately?