As usual, your analysis makes more sense than anything else I’ve read. Two trillion dollar loss of value - there is no way that any of the financial powers can ‘whitewash’ that away - what were they thinking?
I don’t know the ‘natural’ value of anything financial anymore. Take stocks, for example. When they started the quantitative easing in 2009, certain assets such as stocks became overvalued, as in a bubble. So, all these years later, are they still overvalued, or have they somehow come to a ‘natural’ level? If they’re still a bubble, shouldn’t there be more concern by financial professionals that the bubble will pop? Have the financial powers and government so messed up normal market forces that traditional metrics like P/E ratios don’t even matter any more in stock valuation? And how do all these zillions of dollars in derivatives fit into the picture - does *anyone* really understand it? It’s the fact that so few people seem to be able to comprehend the big financial picture that worries me...
Strictly speaking, stocks are at "fair market value," and if one works on the presumption of efficient and healthy markets it is impossible for stocks to be "overvalued".
However, with the Fed actively altering the interest rate environment they are by extension actively altering the level of "fair market value".
It's not that the traditional metrics don't matter, but that the Fed keeps changing the valuation ground rules.
"central banks ultimately are impotent against the concentrated force of financial markets"
They are impotent against spending money you don't have, especially when it is on a worthless plan such as climate change, or "gore bull warming" as I call it.
Despite all the forecasts, it is going to be getting colder, than it already is, and there isn't a thing that we can do about it, even the idea of a nuclear exercise, multiple explosions (400!) on the Great Plains, will do nothing to make it worse or better.
As usual, your analysis makes more sense than anything else I’ve read. Two trillion dollar loss of value - there is no way that any of the financial powers can ‘whitewash’ that away - what were they thinking?
I don’t know the ‘natural’ value of anything financial anymore. Take stocks, for example. When they started the quantitative easing in 2009, certain assets such as stocks became overvalued, as in a bubble. So, all these years later, are they still overvalued, or have they somehow come to a ‘natural’ level? If they’re still a bubble, shouldn’t there be more concern by financial professionals that the bubble will pop? Have the financial powers and government so messed up normal market forces that traditional metrics like P/E ratios don’t even matter any more in stock valuation? And how do all these zillions of dollars in derivatives fit into the picture - does *anyone* really understand it? It’s the fact that so few people seem to be able to comprehend the big financial picture that worries me...
Strictly speaking, stocks are at "fair market value," and if one works on the presumption of efficient and healthy markets it is impossible for stocks to be "overvalued".
However, with the Fed actively altering the interest rate environment they are by extension actively altering the level of "fair market value".
It's not that the traditional metrics don't matter, but that the Fed keeps changing the valuation ground rules.
"central banks ultimately are impotent against the concentrated force of financial markets"
They are impotent against spending money you don't have, especially when it is on a worthless plan such as climate change, or "gore bull warming" as I call it.
Despite all the forecasts, it is going to be getting colder, than it already is, and there isn't a thing that we can do about it, even the idea of a nuclear exercise, multiple explosions (400!) on the Great Plains, will do nothing to make it worse or better.