Uhhh guys?
Are we in a bubble??
Uhhh guys?
Brayden Baker
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Justin Rodriguez
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Alexander Jones
>obviously
the 2009 recession was never allowed to happen. Combine this with the recent surge in confidence and you have a precipitous and precarious situation for the US economy.
Expect a massive crash when the Fed decides to raise interest rates as soon as expectations evaporate of Trump being able to fulfill his promises
Joshua Morales
No, this is a result of quantitative easing. The money supply has been vastly expanded.
The only market which could be said to be in a bubble right now is student loans, and the nature of the industry, particularly that those loans are government guaranteed, makes it impossible for it to cause economic collapse. The government will just garnish wages and fill in the difference with taxpayer money. It's literally impossible for banks to lose on this arrangement or for any company to go under as a result of it short of government itself collapsing.
Gavin Jackson
maybe in a year or so
Cooper Taylor
Im not an expert but we are due
Camden Roberts
Yes and even Trump said so, that's why they have that trillion dollar infrastructure plan. Bannon and Trump have a bunch of articles about this they both expect a 'correction' so will be using this time to pump money into the economy to prepare for the inevitable crash.
Also US banks have much, much more capitalization than any other world banks so they will easily survive any such correction however the EU is going to crash and absolutely burn, especially Deutsche Bank, Italian banks, Portugeuse banks and every bank in Spain.
Brody Baker
Yes. Look into stock buybacks and how pervasive it is. Some is normal because it makes sense, but it is at unprecedented levels and in almost all large companies. Theye are inflating EPS instead of actual reinvestment or paying employees more. All of it is building debt. If interest goes up many markets are screwed.
Brayden Collins
Yeah no shit, the 2008 bubble was never allowed to fully pop.
I hope you got your cash ready to buy at the bottom. Quadruple your money in a decade.
Landon Russell
>Expect a massive crash when the Fed decides to raise interest rates
It depends on how quickly they raise interest rates and other factors
From 2004 to 2007, the federal funds rate went up by 3%. This had the effect of burying every person with an adjustable-rate mortgage who financed their purchase during the housing boom, especially since so many of those people had poor credit and thus poor money management skills to begin with. Rapidly increasing foreclosure rates spread problems to other markets.
If interest rates were raised several percent in only a couple years starting today, it would be unlikely to wipe out the housing market due to banks' unwillingness to give out subprime mortgages since 2009. It very well could take down some other market, though.