Thursday, November 2, 2017

Liquidity Fuels Stock Bubble

Every analyst and her cat are warning about the inflation of stock exchange prices. The phenomenon is caused by the availability of cheap money, which is channeled to the stock exchange, because it has shown the fastest growth of all alternatives. Never in human history has been such liquidity anywhere. Gold and silver were always very scarce.

What could cause a reversal of the trend? Higher interest rates? The American Government sucking off money from the economy to pay it debts? How long can this moneymaking machine be maintained? Now the blockchain money inundation is injecting even more liquidity into the economy.

 I would like to be more intelligent to solve this conundrum. Maybe I should drink more.

Ancient Greek drinking games.

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