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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts

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To: Sun Tzu who wrote (43734)11/18/2021 1:02:23 PM
From: Real Man  Read Replies (1) of 97475
 
49 Trillion dollars, total market cap. Way more than double US gdp, inflating fast at 30% annually, and already bigger than private bond market. Not a Godzilla yet? Somebody is long. In 1929 it was just the top 5% I believe. The masses aren’t long today because they are broke. Changing allocation of $0 in the bank does not make a difference. So the government handouts of 2020 created a stock market splurge in 2020, but that cash is already gone. What’s left is the same pay and much higher bills. Consumption will increase nominally with inflation because people need to eat, pay rent or home taxes.

Fed started pumping because in 2017 the financial system started to run low on liquidity, as seen from 3 large volatility spikes. They beefed up o/n securities lending in September 2019: way before CoVid. Covid just provided a reason to go nuclear on mometization. However, normally Fed gets trapped when inflation spikes
much higher. Someone smarter than me should explain why they can’t keep the pedal to the wall. I guess inflation accelerates and eats the economy.
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