The Investment Thread
I find this so interesting.
So because households are worth the most they ever have been, does it mean that companies are worth more than their already inflated prices suggest? Does it mean my business is worth more now that my neighbor has more money? Does the average person have more money or is the divide between the people with money and those without it are just becoming more extreme?
I certainly understand household wealth means more consumer spending. Except, the household wealth was built through government subsidies and reduced spending. Do Americans realize they don't need to eat out, they don't have to go to movie theatres and sporting events and they like having more money as a result? Was consumer behavior changed from Covid? Lol, hell nah.
Numbers show the household debt has started to increase faster than it was prior to the pandemic. How do you have more debt and more savings in both the public and corporate side of things? Answer is easy, expansion of government debt. We've been on this cycle for a long time now. Crisis happens, we throw money on the embers of the economy like gas on a fire and create this giant fire ball that uses all the oxygen and easy fuels but the second the gas stops pouring it goes right back to embers creating the next crisis where we rinse and repeat. Each time we do this it seems like the time between economic crisis is less and the money balls thrown on the fire is bigger and faster than ever before.
I don't know what the answer is. Ride the wave I guess but once the economy starts hittting those record numbers again in 2022 and all the recent stimulus starts to run through the vein of the economy you better be on your toes. Our addict of an economy will get really sick without it's next hit. The day that debt bubble pops the markets may not see new highs again for 30 years.
I know I keep pounding this same argument home but at the same time I don't think anyone will argue about sustainability.
I find this so interesting.
So because households are worth the most they ever have been, does it mean that companies are worth more than their already inflated prices suggest? Does it mean my business is worth more now that my neighbor has more money? Does the average person have more money or is the divide between the people with money and those without it are just becoming more extreme?
I certainly understand household wealth means more consumer spending. Except, the household wealth was built through government subsidies and reduced spending. Do Americans realize they don't need to eat out, they don't have to go to movie theatres and sporting events and they like having more money as a result? Was consumer behavior changed from Covid? Lol, hell nah.
Numbers show the household debt has started to increase faster than it was prior to the pandemic. How do you have more debt and more savings in both the public and corporate side of things? Answer is easy, expansion of government debt. We've been on this cycle for a long time now. Crisis happens, we throw money on the embers of the economy like gas on a fire and create this giant fire ball that uses all the oxygen and easy fuels but the second the gas stops pouring it goes right back to embers creating the next crisis where we rinse and repeat. Each time we do this it seems like the time between economic crisis is less and the money balls thrown on the fire is bigger and faster than ever before.
I don't know what the answer is. Ride the wave I guess but once the economy starts hittting those record numbers again in 2022 and all the recent stimulus starts to run through the vein of the economy you better be on your toes. Our addict of an economy will get really sick without it's next hit. The day that debt bubble pops the markets may not see new highs again for 30 years.
I know I keep pounding this same argument home but at the same time I don't think anyone will argue about sustainability.