This article totally neglects the alarm bells blaring in late 2019/early 2020. The Fed lost control of an obscure but crucial corner of the bond market (the repo market), slinked away from Quantitative Tightening with its tail between its legs after a timid venture into normalizing its balance sheet, and was generally starting to brace for impact.
Then, the pandemic and a Niagra Falls of liquidity. Unprecedented in all of American history with the possible exception of WWII.
The country has just fought a war. Wars bring inflation and price bubbles. In the aftermath, prices normalize and the speculators get washed out. And by that point, almost everyone is a speculator.
The question is not whether evidence for bubbles can be found in every corner of the economy, but to what lengths will the country go to keep the music playing.
I wonder if the US can manage to drop the load onto the weaker recovering economies. At the end of the day, are you trading your depreciating dollar for another currency? To me, it seems like the US can keep the music playing until the rest of the world gets out of their shutdowns.
Then, the pandemic and a Niagra Falls of liquidity. Unprecedented in all of American history with the possible exception of WWII.
The country has just fought a war. Wars bring inflation and price bubbles. In the aftermath, prices normalize and the speculators get washed out. And by that point, almost everyone is a speculator.
The question is not whether evidence for bubbles can be found in every corner of the economy, but to what lengths will the country go to keep the music playing.