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Stock bubble's, like almost all asset-price inflation, can be pricked by central bankers around the world by raising interest rates. The one thing holding them
by 1cvmask 5y ago
Stock bubble's, like almost all asset-price inflation, can be pricked by central bankers around the world by raising interest rates. The one thing holding them back is the fear from politicians as the debt-to-GDP ratios are at all time highs (if you exclude the World Wars eras). Even is they may seem independent they really are not.
On that note Biden kept Powell as chair of the Fed:
https://www.bbc.com/news/business-59340779 https://www.bbc.com/news/business-59340779
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There are of course other instruments that can be used to prick asset-price inflation like taxation measures and making the holding of assets more costly. But that is unlikely. In fact they just gave a huge tax break to the rich:
https://www.theguardian.com/commentisfree/2021/nov/22/democrats-are-pushing-tax-breaks-for-the-rich-theyll-cry-when-voters-punish-them https://www.theguardian.com/commentisfree/2021/nov/22/democr...