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Washington Is Creating A Wall Street Bubble, One Bank Suggests
"DC's policy bubble [is] fueling Wall Street's asset bubble," BofA's Michael Hartnett wrote, in the latest edition of the bank's popular weekly "Flow Show" series.
It's a familiar narrative. It goes something like the following.
Massive fiscal stimulus accommodated by the Fed has created fertile conditions for speculation and asset price inflation, as i) abundant liquidity looks for a home, ii) investors chase out the risk curve and down the quality ladder in search of yield, and iii) home buy
Zero or negative interest rates are a game changer. Who is to say the s&p or dow is overvalued while base interest rates are so low. The stock market is the only game in town.
If we can’t reengineer the human psyche, can we ever fix global socio-economic disfunction. We may have reached our limits as a species. As Yuval Harari asks, what evolves from homo sapiens?
” … what evolves from homo sapiens?” I don’t expect anything does. Every other previous version of humanoid being on earth died off. No reason to expect that we should be any different.
I remain cautiously optimistic given dogma is the primary hindrance to actually building a functional sustainable civilization. We have the resources and technology build it. We just have a failure to imagine it and a handful of very powerful yet very scared and small people standing in the way. We’ve been in preposterous dystopia long enough that we either embrace the death throws of civilization or try Utopic concepts just because it seems less stupid than dying off out of spite for good ideas.