Why is every asset dumping when the M1 money supply is still 5x what it was in February 2020?
Why is every asset dumping when the M1 money supply is still 5x what it was in February 2020?
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Because people think the fed will actually successfully tighten instead of what they will actually do which is cuck out the second something breaks.
Irrational dumping. Its Covid 2.0 except this time there is literally no reason
How could anyone possibly think the fed can ever remove $16 trillion from the economy? Is everyone retarded?
Yes
Not saying Fed didn't print, but part of M1's jump is because it's basically M2 now
retard here, wasn't that money just used to buy government bonds?
Yeah some argue that direct stimulus did more damage than printing to buy bonds even tho the number is way smaller in the former
You know what has been increasing? Interest rates. That means risk preferences are also shifting.
Also that information has already been priced in.
the vaccine dieoff has begun, my company's attrition rate is through the roof
they’ll just taper bro don’t even worry
They're going to crash everything or let inflation spiral out of control, they have to pick one or the other and it looks like they've made their mind.
yeah bro you would need trillions worth of assets to pull it off
Because people are waiting for something to break before entering the markets.
It will break this week
>Is everyone retarded?
...yes? There's a reason why the word goyim exists.
Its more complicated than that. Most of that money isn't in the hands of consumers chasing goods and services. Much of the money was also created through cheap debt. Which now sits in things like realestate and cars.
plus a massive coming wage spiral is coming by eoy whivh is why they want a recession, but a recession will make things even worse due to fucking supply chains even more.
Markets are forward looking. They no like what they see. Also lot of fear.
you know what people dont think about? 100k people a month are crossing our border and every fucking one gets food stamps. $400 a month
m1 is not a good measure, they changed the definition of what constituted m1 which is what caused that big increase in may2020 I believe.
>m1 is not a good measure
because?
investopedia.com
>Note that in May 2020, the definition of M1 changed to include savings accounts given the increased liquidity of such accounts.
It isn't measuring the same thing it did before the pandemic.
It's called inflating away your problems, every government with a fiat currency does this retard.