New York Times: "For tens of millions of Americans, the good times are right now"

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The boom purely exists because of 13 years of fiscal stimulus… basically 0% interest rates and Federal Reserve asset purchases. Because of inflation, that must end. So the tide is reversing, and stock and bond prices are falling, housing prices will be falling, the wealth effect will run in reverse, and people who bought assets at or near the top are going to be badly hurt. And if they don’t raise rates and do QT, we’ll be in a financial repression regime with deeply negative real interest rates, the Fed will continue to wage war on regular people who depend on US Dollar savings as a store of value. It’s ugly no matter how you slice it. People will be poorer after a time, and they won’t know why, and you may get autocrats from the Right or the Left elected to office. These are fraught times for America.

It’s like the late 1960s, everyone thought the “Nifty Fifty” era would go on forever, no one could have foreseen a decade later we’d be wallowing in Stagflation, The Misery Index, Vietnam would be lost, we’d have Iran Hostages, the Dow and S&P would have lost MUCH more than half in inflation adjusted terms, and we’d have 18% mortgages.

The people who live in a bubble don’t know they are in a bubble until it pops.

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