/biz/ - Business & Finance

>continue ze OOOOening

>he rolled?
>cheque zem

Lets think it through...

The consequences of liquidity injection by the Fed means stocks will go up as a matter of TINA and inflation hedge. The low interest rates means you can literally take on loans to invest in the stock market and the value increase in the stock will outweigh the interest costs. This is sustainable infinitely and the fundamentals of the stock don't matter at all...UNLESS the fundamentals show the value of the stock to be 0 because of insolvency.

So if there's to be a crash. What's the insolvency event? I think the insolvency event will be with MBS or CMBS. It's simple, plebs can't pay their air bnb apartments and houses. People are ditching the cities because of riots and it being an infection hotspot. City-apartments are the most inflated assets ever, but are used as the bases for credit expansion. These will collapse in value and some bank out there will become insolvent, this will unwind the entire credit bubble. My bet is wells-fargo will be the biggest failure point.

If there is no insolvency event, stocks will rise forever. Interest rates will NEVER tighten because the tightening will cause the collapse. They tried tightening, it nearly caused the collapse and the fed BACKED OFF. Which shows they only respond to the stock market.

>a solar flare wipes out all life on earth
>stock market reaches all time high

>>18712256
>Paahmp it and make him believe it's zee V-shape recovery, zen deuxmp it agen