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  • Asset bubbles won’t help our post-pandemic recovery

    From bruegel.org

    Covid-19 will be remembered as the worst global economic shock in recent history but, compared to the most similar one, the Great Depression of 1929, its consequences on asset prices have been radically different. In fact, the Great Depression started with an implosion of equity prices while the current pandemic started with a sharp correction in asset prices, especially as Covid reached Europe and the US in March last year, but quickly developed into one of the wildest bull markets in recent economic history. The reason for the diametrically different equity performance mainly lies on a very different reaction from ... (full story)

  •  Guest
  • | IP X.XX.158.35
Who said bubbles can help ?
But stimulus is the only way to get urgent help for the small people in this covid crisis !

It is what it is. Lamenting about printing is so inappropriate in times like these !
  •  Guest
  • | IP X.XX.158.35
Major difference ! In 1929 we had the gold standard, this means a strong limitation of the money supply.
Then the inability to print more fueled the deflationary spiral. And boom ! There you have a recession turned into depression. Classic scenario.
Who cares about deficits today ? Yeah, only old school Nobel economists and restless economic fund managers metamorphosed into the pillars of social responsibility along with the retail crowd of losers. That means almost everybody ! lol
But deficit is a figure on the paper, and a myth. The real big scary thing is the INFLATION lurking in the shadows.
Inflation is inevitable. Sooner or later all of this printing will hit the real economy and not just assets. And then we have it. I am looking to cash in on my personal debt in the coming years (:
  •  Guest
  • | IP X.XXX.11.178
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  • Story Stats
  • Posted: Feb 23, 2021 4:13am
  • Submitted by:
     Newsstand
    Category: Fundamental Analysis
    Comments: 3  /  Views: 365
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