Toddsterpatriot
Diamond Member
Cheap money. That’s the elephant in the room. Cheap money, or more specifically ARTIFICIALLY cheap money, leads to booms and busts. The housing crisis was the result of artificially cheap money and then after that we saw even CHEAPER money.. cheaper than ever before in history.. so unless somehow the fed became geniuses out of nowhere and got it right for the first time ever, we’re in danger of this happening yet again because when there’s too much money it has to go somewhere and because people are imperfect the excess money tends to be misallocated because of distorted market signals caused by central planning of the world’s largest economy.
we’re in danger of this happening yet again because when there’s too much money it has to go somewhere
QE3 ended in October 2014. The Fed has been reducing their balance sheet and raising rates.