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Politics : Formerly About Advanced Micro Devices

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To: Bonefish who wrote (1358316)5/12/2022 10:32:36 AM
From: Broken_Clock2 Recommendations

Recommended By
locogringo
Mick Mørmøny

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The Mother Of All Collapses Has Begun

by Phoenix Capital Research

Thursday, May 12, 2022 - 2:05
The mother of all collapses is coming.

The Fed claims it can tackle inflation without triggering a crisis.

Good luck with that!

The Fed triggered a crisis with the Tech Bubble (a bubble in a single stock market sector) and the Housing Bubble (a bubble in a single asset class). And neither of those are remotely comparable to this last bubble.

This is the Everything Bubble: the bubble in every major asset class (stocks, housing, corporate debt, municipal debt, etc.)

Some of the more egregious signs of froth/ financial excess.

    Options trading volume (a sign of speculation) was exponentially higher than it was during the Tech Bubble which everyone on the planet now knows was an insane bubble.


    Crypto currencies that were invented as jokes (Dogecoin) were being valued at tens of billions of dollars.


    Tesla (TSLA), which sold ~300,000 cars in 2020, was worth more than the value of every other auto manufacturer on the planet combined.


    People were selling Non-Fungible Tokes (NFTs) of farts, toilet paper, New York Times articles and more.


    “Meme stocks” or stocks that were traded for ironic/ humorous purposes were doing this:
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    Former President Trump’s Special Purpose Acquisition Company (SPAC) rose to a value of $5 billion despite having no business or operations.


And the Fed believes it can somehow tackle inflation… AND dissipate this bubble without blowing things up?

Ok, I’ll bite.

Inflation is at 8+%. The Fed has raised rates to 1%. It has yet to even begin shrinking its balance sheet. And stocks have done this:

[url=][/url]

What happens when the Fed is forced to raise rates to 5%? What happens when it tries to shrink its balance sheet by $1 trillion+?

You get the idea.

The Mother of All Collapses is coming.
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