Yeah hyperinflation is definitely not going to happen. Doomers somehow think that the stock market is going to crash and lose most of its value and then there's going to be hyperinflation at the same time and that's just...not a thing.
How do we go from high levels of inflation to deflation? We're not dealing with an over supply of goods, low demand, or a retraction in the money supply.
Yes, companies with good management will make money. There's not a whole lot of them around.
Deflation requires people to still have trust in a currency though. If people trust in the value of money, in the response to a severe economic contraction they will horde the money to get them through the crisis, holding onto it like dragons gold. This increases its value. Thus, deflation.
How do we go from high levels of inflation to deflation? We're not dealing with an over supply of goods, low demand, or a retraction in the money supply.
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Yes, companies with good management will make money. There's not a whole lot of them around.
What I mostly see are out of touch management refusing to change. Companies are literally self-immolating right now. Facebook had a 5-hour outage because no competent heterosexual men want to work there.
"Regular folks" are going to figure out a way to fuck themselves over no matter what. Leasing vehicles, eating out, HELOCs, credit card debt, vacations, consooming, etc. They're just going to follow the crowd into the financial abyss.
Companies being wildly overleveraged, people quitting their jobs, post-COVID change in consumer habits, skyrocketing housing and energy costs reducing discretionary spending, etc.
You said the magic words. "Hoarding cash". There is this assumption if shit hits the fan people, banks and corporations will "hoard cash". It's what they have always done right? This time though the US government and the Federal Reserve have debased the currency to the point where confidence in it is dangerously shaky. A financial panic could just as easily trigger a rush to Precious Metals, Land and Cryptos. All the Dollars in circulation dumped at once, last one in line to the exit holding the bag.
I am going to cash right now because I expect a meltdown in the coming weeks and I want to swoop up some bargain buy. My primary targets are Ethereum and Solana in the Crypto space, and for stocks I intend to scoop up Coinbase, Alphabet and Cargill.
Small, I'd wager. A bunch of it is tied up in reverse repo right now. That's why I disagree with the idea that there will be an asset run causing hyperinflation. With what money? A bunch of corporations are paper rich because of stock buybacks but they can't cash out without crashing. Everyone's just stuck.
The banks aren't though. The Federal reserve has given them a blank check and access to savings accounts. While reducing the fractional reserve rate to zero. Any dollars out in the wild from them are already contributing to inflation while the dollars they have not used are waiting to get dumped.
Finally found some stats. Being right is fucking awesome.
If things get to the point where the government’s seizing property en masse, I think you’ll have bigger issues than having your name inked on a deed; issues such as finding a source of clean drinking water. Looking at investments through a doomer point of view is futile. If you’re considering your first home purchase based on what the interest rates might be when the apocalypse hits, you should rethink your priorities.
The Mania will continue until the fire's sweeping the market burn it all to ash.The Financial Press is now at the "Do not be afraid, everything is fine!" Stage.
Don't count on a crash: Goldman Sachs expects 'record highs' to keep rolling, with these 3 stocks leading the way
The bank sees the S&P 500 rising 9% next year, but investors still need to be choosy.finance.yahoo.com
