pfo said:
The devaluation of the dollar has made everything we buy and invest in seem too expensive. The end of QT and lower interest rates should result in increased liquidity and high prices for both goods and investments. It's not that land and gold and stocks are that much more valuable, it's that the dollar is that much less valuable..
Truth.
It's a constant search for economic and market equilibrium. If everything becomes too expensive for the average consumer, due to purchase power destruction via inflation and/or stagnant wage growth/loss of employment, then there is little or no market for goods and services.
Generally, the economy would have a natural cycle to cleanse malinvestment out of the system. The house always creates an opportunity to rake their chips in before average investors have a chance to get out of the market through liquidity traps. And we have forces which have a strong desire to guide the rate of descent at which the cycle cleanses to lessen the impact on favored institutions; often prolonging the cleanse and subsequent recovery. With each cycle, those forces protect institutions that created the malinvestment which would otherwise be flushed out of existence.
And the cycle repeats...
Additionally, all of the dumb hullabaloo of 2002 and 2008, with Sarbanes-Oxley and Dodd-Franks feel good bullcrap policy to "protect consumers" was filled with gaps and loopholes that were easily circumvented by the usual suspects that create these bubbles. Don't look to DC for remedies though they will be forthcoming when the markets have a violent, guttural spasm.
