by cervantes__01
’08 should have been a complete collapse of asset bubbles.. instead of allowing it all to clear out, central banks started inflating the money supply via debt to catch freefalling assets and to re-inflate them to make debtors solvent.
They printed far too much for far too long.. more and more debt = higher and higher asset prices = higher and higher debt repayments.
Asset prices blew up so fast and far above what local wages could sustain.. a 3% wage increase in response to +20% cost of living y.o.y. is still massive losses to workers/savers.
Fed wants to suffocate labor which ironically is a response to asset inflation.. and nothing to do with the reverse. Homeowners carry the most debt ever, corporations hold the most debt ever, stock and crypto investors hold the most debt ever.. all prices are blown up by debt.
We have too much debt. The debt repayments have become so large that it chokes off all other economic activity and investment.
Unemployment figures are a joke.. except for a few key industries like healthcare most of the economy is shrinking with little left for people to make a living other than ‘gigs’ or other temporary work.
Situation is quite dire.. and it’s all dependant on debt.. thus asset prices to grow exponentially.. but if ever more debt can’t be carried then the whole house of cards must collapse.. it’s called a debt deflation.. 1929 style.. and it should have already happened in ’08.. they kicked the can up the road.. but really, there’s not much if any room left.