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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: TobagoJack who wrote (169392)3/12/2021 12:22:33 AM
From: sense  Respond to of 217644
 
The issue of cryptos today versus the dot.com bubble market... is one of market context:

The Mother of All Stock-Market Bubbles

Most amusing part is that the article is dated March 4:

"The Fed’s December plan was to hold rates at rock bottom levels until unemployment is minimized and inflation surpasses 2 percent, which they expected to take 3 years."

"The financial markets are already beginning to bring forward their expectations of when the Fed will begin raising rates (about two years), and it would not surprise if this start anticipating an even closer date in due course."

What day was it when Ten Year rates spiked to 1.4% ? Wasn't that March 4th ? So, before they could even publish what they'd written about "an even closer date".. vs two or three years...

I note a few instances in the article showing the author trying to soft-pedal the situation...

Notably, the "we're not in a housing bubble" presentation... that fails to note that, like bank stress, house prices tend to rise and fall with interest rates... and with interest rates at or near zero... the trend is not banks friend in providing support for "not a housing bubble" in terms valuation relative to a price/interest ratio... while income falling in the wake of a market bubble imploding with the end of easy money... might keep the price/income ratio rising, as it did in the late 70's... and following the 2000 bubble... without that help banks at all... when falling incomes mean mortgages don't get paid. Terrible instance of charts "lying with statistics"... using a metric used that only adds confusion.

Fortunately, banks pocketed all that QE to offset their future losses with rates rising ? /s



To: TobagoJack who wrote (169392)3/12/2021 7:57:35 PM
From: sense  Respond to of 217644
 
As per prior reply...

Been there, done that...