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To: Sun Tzu who wrote (113123)	11/13/2020 1:33:29 PM
From: Lee Lichterman III	Read Replies (1) \| Respond to of 116957

The Fed spigot may be wide open but just like a country printing money to inflate away it's debt, there is a limit. Look at midstreams. No one cared about their debt load until they did. Just because the Fed is giving away money, eventually they will have to stop and company debt will matter again. Rising rates, debt loads or a covid lockdown etc could unhinge these markets at any time. Are you going to pay twenty million times earnings for a company growing at 3%? There has to be a line somewhere. Wherever that line is, I don't know and neither do you. Worse is that line moves and the bigger the bubble, the faster and harder it pops. Just the other day when we were up big on the vaccine news, a lot of us couldn't log into our brokers. Imagine if it had been a huge crash day. I remember watching the world crashing in the 90s with the Asian contagion etc. We are higher now than back then. FWIW, my cycle work shows we have about 2 weeks and something is going to shake things up.

To: Sun Tzu who wrote (113123)	11/13/2020 2:02:35 PM
From: Real Man	Read Replies (1) \| Respond to of 116957

It’s about the degree. The Fed always manipulated markets, but lately (after 2008 near total derivative market meltdown) it went into overdrive. If the Fed did not interfere in 2008, we would have the worst 30 year depression ever for US economy. Now we are sailing happily. Consider the cause of 2007 crisis: bond rating on mortgage instruments do not correspond to reality. Right now bond ratings on treasuries do not correspond to reality. Last time I checked the rating was AAA. Reality is a D rating (default). While treasuries are still paying interest, USA has to print money to pay it. This is not good, it’s default in reality because the country isn’t paying its debt in full as it’s currency is being devalued to make the payments. en.wikipedia.org The bond and stock markets of a country are tied to it’s sovereign debt, so everything goes to shit in a hand basket once that goes to shit.

To: Sun Tzu who wrote (113123)	11/13/2020 2:28:53 PM
From: Real Man	Read Replies (1) \| Respond to of 116957

When we had a sovereign crisis in Greece, the country’s stock market dropped 90% to its value in 1978. The pundits are telling US is not like Greece because it is tied to euro and can’t print. US is A ok cause it can print it’s way out of default. The problem is, printing your way out of default is a sovereign default, so you can’t really escape it.