We'll see what actually happens.
I mean... they printed money when COVID hit to keep the US spending.
If this sell off starts triggering massive buying of off shore stocks due to unease in US stocks... they gotta do something to keep investors in US stocks.
Not to be a doomsayer, but with rising inflation (again) due to tariffs, probable layoffs due to reduced demand on american goods due to tariffs and combine that with high interest to fight the self-induced inflation, people will default, a lot. Even domesctically produced goods will be hit with inflation due to potash tariffs.
I’m seeing in my unqualified crystal ball, a depression happening.
That was nearly 20 years ago. There is no hard rebooting the economy. The entire economy is based around the federal government propping up loser businesses and insanely useless tech enterprises. There is no rebuilding this house of cards.
The government isn't propping up tech. Big Tech prints money to send to DC for DC to buy flyover state votes.
Everybody was all doom and gloom about tech when interest rates rose. No, Mag 7 became a thing and while non-tech companies stagnated you saw Apple bust past $3 trillion. Even in our "high" interest rate environment you see OpenAI reach $300 billion valuation without government nonsense like Farm Welfare.
The past 5 years has proven it. Interest rates up? Big Tech. Interest rates down? Big Tech.
It's not a computer you just restart and it works different. You have to actually have a coherent theory of macroeconomics that is supported by evidence in order to make good policy.
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u/DPMKIV 23h ago
We'll see what actually happens. I mean... they printed money when COVID hit to keep the US spending.
If this sell off starts triggering massive buying of off shore stocks due to unease in US stocks... they gotta do something to keep investors in US stocks.