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There's been massive inflation in the previous 13 years of money printing, it's just that it all went to assets such as stocks.
by jdhn 5y ago
There's been massive inflation in the previous 13 years of money printing, it's just that it all went to assets such as stocks.
- mywittyname 5y agoRight, so it didn't affect consumer prices for 13 years. So why would anyone believe that it's at fault now? It does seem kind of disingenuous to blame inflation on a something we've been doing for over a decade rather than the major black-swan event that happened two years ago. Especially since pandemic inflation was nearly instant: lockdowns -> shortages -> price gouging.
- 01100011 5y agoI don't know, but I feel like the past 13 years just let the dry powder accumulate. COVID and resulting stimulus and supply shocks were the spark. When speculators saw the market dynamics they were able to use the cheap money to speculate, kicking off a feeding frenzy. Markets are non-linear. I think we crossed an important threshold in March 2020 and the fed wasn't active enough to realize or react to it. That said, you did see asset prices reach questionable levels even before COVID. I pulled most of my money out of the market in late 2019 for that exact reason. I was convinced we were due for a correction then.
- lovecg 5y agoAssuming that’s true, why is that bad? It’s great for people who own these assets and neutral for people who don’t.
- missedthecue 5y agoCan you explain, mechanically speaking, how it went to stocks over the last 13 years?