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Justifying A Bubble
I wrote twice already this week about corporate balance sheets and the accrued blessings of 2020/2021's generational terming-out opportunity afforded by the Fed's efforts to ensure capital markets remained (wide) open come hell or high pneumonia.
Corporates, particularly blue-chips, were able to borrow fixed at rock-bottom rates in what, initially, was a bid to fortify balance sheets against a prospective global depression. When, instead, a quick recovery in global demand (on the back of big fi
Can’t we check the loose monetary policy box by virtue of the terming out of debt and tax policy?
If we are in a bubble, I do think AI could keep it afloat for a while. I also wouldn’t be surprised if the irrational exuberance around crypto and banks being allowed to get into the crypto game could set us up for another leg higher. However, banks getting into crypto could also be the thing that bursts the bubble. Nothing like adding a bunch of speculative “assets” to our financial system to get that froth bubbling.