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you can borrow money for almost nothing, we have a President that wants to go "big" to fuel the economy so of course the housing market, corporate America/stock market are going to sizzle. Corporate America couldn't be more pleased, that's where most all of this proposed stimulus money is directed. Meanwhile on the other side of the coin, those disadvantaged by poor decisions or plain bad luck are left quibbling over paying them a couple extra dollars an hour. It's almost embarrassing. It's the perfect environment for investors.
All that money the Fed is printing has to get parked somewhere.
It does, into the pockets of corporate America, that's why the market is sizzling. Giving out $1400 checks and raising the minimum wage a few bucks is chump change. The bulk of cash being handed out is going to the same corporations it went out to during the last administration's stimulus plan.
But the stimulus checks are hardly enough to buy a few weeks of food and gas.
Speak for yourself. As a family of 4, Uncle Sam has thrown $4,800 at us. That's about 6 months worth of groceries for all 4 of us, or 3 mortgage payments I got to divert into my brokerage account instead. And if Uncle Joe gets his way, they'll be winging up to another $2,800 at us depending on where the income cutoff is.
Not to mention only a small portion of the stimulus money is going straight into individual's bank accounts.
^^^Plus, the money not being spent on travel, dining out, and attending concerts, live theater, movies, etc. is winding up in investment accounts. A lot of consumer spending by people who are still working has been suppressed for months due to COVID shutdowns. So that money has been invested in the stock market and real estate markets instead.
I thought the market had already priced in the "recovery". Now, Biden is going to raise taxes and bring back the regulation that under Obama prevented the economy from every seeing 3% growth at any time in his 8 years in office.
I am flat stumped. Besides the government printing press, which may be all it takes.
So we have a stock market bubble and housing bubble at the same time.
These will never "pop". Right? Right folks? Anybody? Bueller?
The ponzi scheme goes on and on. It is time to borrow a million bucks and buy tulip bulbs before they are priced out of sight.
I just turned on the TV and the Dow is up nearly 500 points since this morning and is at 31,995 as I post this.
This is total insanity. There is NOTHING to support these prices that I can see or understand - other than just outright massive gambling and speculation. It's like the entire economy has become some sort of BitCoin ponzi scheme.
What ever happened to fundamentals? Like building stuff, tangible assets and real property? Everything exists in the ether somewhere and it is out of control. Billion dollar companies that really only consist of a bunch of obsolete computer banks and rented office space, and if they were parted out wouldn't bring 500 bucks at a garage sale.
How can this not be a massive bubble with the Dow going up a thousand points every few weeks, with no end in sight?
Am I just totally out of touch - or are we about to experience a crash of epic proportions when reality catches up to the oligarchs?
I just don't understand - can someone educate me how this can just keep going up and up and up - when nobody is buying anything and companies of all sizes are barely hanging on and that only by the grace of massive stimulus and unrestrained printing of money.
Does everyone just think the music will never end? That's what they thought in 2007...
I can't speak for the OP and what he is driving at but possibly he could be as curious as me as to what the heck is going on with the economy
First off, I understand the mechanics of letting your investments "soak" through the good times and bad times because historically they will always recover. We have accounts that we stopped contributing to when the twins were born, they are up at least 7 times value in 13 years. This is pretty amazing, but I also understand it's just monopoly money until I pull it out.
Same with our house, we are up four times it's value in the last ten years, but unless we sell it is irrelevant. I am witnessing homes around me selling in the matter of days for over asking, but again unless I sell it does not affect me, it only adds to my amazement.
We are in a pandemic, the travel and entertainment industry is in turmoil and yet we have one of the quickest market rebounds in years coupled with historically low mortgage rates which have fueled a massive sellers market and a never seen before gigantic government bailout that is putting billions of dollars in the pockets of American families which in turn is pouring that back into the economy.
I am not looking for doom and gloom but just fascinated by the economic climate we are in. At sixty I have seen plenty of economic booms in my lifetime but can't recall witnessing a boom that went hand and hand with an economic bust due to a global pandemic of epic proportions.
Last edited by JBtwinz; 02-25-2021 at 05:40 AM..
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