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ZIRP is gone for sure, but most of the $7T the Fed printed during COVID and the $3.5T the Fed printed post-GFC remains (net +8T). For this reason, I believe th
by jgalt212 1y ago
ZIRP is gone for sure, but most of the $7T the Fed printed during COVID and the $3.5T the Fed printed post-GFC remains (net +8T). For this reason, I believe the era of VC-driven nonsense is far from over. A simple example is that stonks have recovered all of almost of all the post Liberation Day losses. This excess cash / Helicopter Money for the investor class has to go somewhere.
https://fred.stlouisfed.org/series/WALCL https://fred.stlouisfed.org/series/WALCL
- xk_id 1y agoBut as the graph shows, QT is well underway and it would take approx 5yr to suck the cash back in, no? It will be gradual, but we should see that risk is starting to become expensive again.
- jgalt212 1y agoThey keep slowing down the rate of QT so who know when they'll get back to pre-GFC levels (if ever). Until then, the do nothing investor class will rule the roost, and calls to action such as "It's Time to Build" will go unheeded.