Be Careful Comparing The Bubble With Today (Hint: Fed Went From Soulful To Shattering With Collapsing Money Velocity)

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by confoundedinterest17

It is problematic comparing stock market ratios of today …

to the infamous bubble of 1995 to 2004.

Why? The Federal Reserve wasn’t pumping trillions into the market.

Look at the red line (Fed Funds Target Rate from 6.5% in 2000 to 0.25% today and the orange line (the massive growth of The Federal Reserve Balance Sheet).

The Fed isn’t trying just a little, but tried so hard. M2 Money Velocity was over 2.0 but is now almost 1.0 with M2 Money growing at 24.1%.

Can The Fed endlessly print money without consequence? Of course not. We are ka-screwed.

Is Fed Chair Jerome Powell really Vanilla Ice?




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