Printing Money Worked To Pump Up Markets, and That’s A Huge Problem. Here’s Why.
The investment world has really changed in 2020, it seems. Retail investors have outperformed hedge funds. Risk tolerance has accelerated. Portfolios have grown for those in equities by a large margin. But many have forgot to ask, what got us here in the first place?
Bank of Japan: Total Assets for Japan (JPNASSETS) | FRED | St. Louis Fed
Central Bank Assets for Euro Area (11-19 Countries) (ECBASSETSW) | FRED | St. Louis Fed
Source: European Central Bank Release: Weekly Financial Statements of the Eurosystem Units: Frequency: Notes: A longer history for this series is available on the monthly series ECBASSETS. Copyright, 2016, European Central Bank (ECB). Reprinted with permission. Suggested Citation:
Success of Economic Stimulus Could Erode Central Bank Independence – Bloomberg
bofa 12.jpg (737×426)
bofa 11.jpg (737×425)
This Christmas, Wall Street is partying like it’s 1999 – MarketWatch
Retirement accounts are ending the year in better shape than we could possibly have expected. But stock prices and investor euphoria are now in dangerous territory. I hope I’m wrong, but I’m starting to hear echoes of another Christmas when a boom gave way to years of bitter disappointment.
retail 12.23_0.jpg (976×601)
Gold prices have increased with the amount of global net negative-yielding debt | Post by Adam Perlaky | Gold Focus blog | World Gold Council
Gold continued its strong June, closing the week higher (LBMA 0.8%, XAU 0.7%) for the sixth straight week. It was as high as $1,440 on Tuesday, but gave up some of its gains late in the week as Fed Chairman Powell made comments that a 50bps cut in July was ‘too much’.
Pandemic-stocks: Covid drove massive market gains — what happens next
The pandemic turned 2020 into a year of unprecedented events – not the least of which was the swift crash and then record-fast recovery of the stock market. The market’s race higher has been in stark contrast to an economy that has been growing slowly.
Bloomberg – Bloomberg
US banks rack up $200bn in fines and penalties over 20 years | Financial Times
The six largest US banks are close to hitting a milestone $200bn paid out in fines and penalties globally since the turn of the century, according to a new tally by advocacy group Better Markets.
The stock market is rising higher and higher. There has never been a time in which so many investors have been putting money like this into the markets before. More tech stocks are becoming household names. Many unicorns are born every day. Billion dollar companies with excessive debt, SPAC deals, and IPO’s are absorbing the insatiable investor appetite.
— APPENDICES —
- The Money GPS: How To Get Out of An Economic Crisis. Action Steps To Excel, Prosper, and Prepare!
- The Money GPS: If You’re Dealing With Unemployment, Wage Cuts, or Crisis THIS Is What You Must Do
- The Money GPS: Who Controls the World? These Organizations, Institutions, and Families Run the Show
- The Money GPS: Rothschild and Rockefeller Team Up With the Vatican! Follow the Money…
- The Money GPS: The Broken Economy Leaving Millions Without A Job! Economic Crisis or Opportunity?
- The Money GPS: BIS Central Banker Admits EPIC Level Crisis Is the Most Likely Result of Global Mass QE
— FOOTNOTES —
Wake up to the suits and ties. They’re all lying to you. None are your friends. None wish to help you. Wolves in sheep clothing. More distractions than ever before. The magician always makes a spectacle to hide the trick.
What if the stimulus included more money for people. Is $1200 enough? $2000? Is this going to solve any deep rooted problems? What about the disgraceful 5600 pages filled with billions that have nothing to do with where people actually need help? #StimulusChecks #StimulusBill
We live in a fantasy land. More money flowing in than ever before, IPO frenzy, housing skyrocketing. Euphoria never end well. The higher it goes the worse it will be. Slow and steady growth is much safer. #money #investments #debt
IF THEY WILL FIGHT OVER PLAYSTATION…What would they do for food? #ps5 #PlayStation5 #playstation #ps5fight #walmart pic.twitter.com/hbimVKzeta
— PLAYLISTS —
The Money GPS Financial Education 101 coming soon.100% free eCourse for you to learn from but for those who already know the content, this is perfect to share with others. I’m creating this course for people specifically to get the foundation #money #moneyGPS #financialeducation pic.twitter.com/nzqVVSSorT
HOW TO MAKE MONEY ON AMAZON – FREE eCOURSE: http://TheAmazonGPS.com
LOOK THROUGH MY BOOKS! http://books.themoneygps.com
SUPPORT MY WORK: https://www.patreon.com/themoneygps
MY FAVORITE BOOKS: http://themoneygps.com/books
Sources Used in This Video: http://bit.ly/TheMoneyGPSSources2020
The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It’s simply data that is generally not found through conventional means.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.