It's because the federal reserve is setting interest rates, and not the market, but that creates bubbles. I mean, if you had 100K sitting around, would you deny yourself access to that money for 30 years to finance somebody else's mortgage at 1% APR?
After all, if you can (effectively) get money from the central bank at 1%, and stocks are going up 10% per year, then it's a no brainier. But that is a disaster waiting to happen, either it ends like the housing bubble in 2008 with a massive crash, or it ends hyper inflation.
They pump up a bubble, dump the stocks on people, then pop the bubble, and buy up all the assets for pennies on the dollar.
My prediction is that they will have Biden crash everything, and then when everybody hates him, he will be 25'd from office to defer blame.
It's because the federal reserve is setting interest rates, and not the market, but that creates bubbles. I mean, if you had 100K sitting around, would you deny yourself access to that money for 30 years to finance somebody else's mortgage at 1% APR?
After all, if you can (effectively) get money from the central bank at 1%, and stocks are going up 10% per year, then it's a no brainier. But that is a disaster waiting to happen, either it ends like the housing bubble in 2008 with a massive crash, or it ends hyper inflation.