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by metrix 2120 days ago
My understanding is that the inflation is causing skyrocketing asset values, it just hasn't trickled down into the economy.
4 comments

We are all commenting on an internet forum run by a company whose entire purpose is to funnel money captured from the (predicted and actual) sale of valuable assets into the economy in the form of more new companies.
This. So much.
The action of central banks setting interest rates is an artificial market intervention that necessarily suppresses others asset prices by making risk free assets available that pay free money to banks and financial institutions.

Once the central bank hits zero, asset prices return to their market clearing prices as participants chase yield

And it won't, how should it trickle down?

By the 10 %? By the people entering pension?

I will be K shaped, the rich get richer, pension people will be able to "enjoy" there pension and the poor wont be able to afford rent. Since big corps and funds will invest in housing to "save" money.

Not necessarily. So far it seems like the FED has gotten a lot better at preventing recessions / depressions. That might take some risk out of the market and cause valuations to go up given that risk is less.

Probably a little of both, but it is an interesting time in economics for sure.