Some good thoughts on this topic I read recently:
* Quantative Easing (eg printing money) floods the economy with money, it has go somewhere.
* Since the real economy (manufacturing / information) isn't growing, the money flows into assets (eg real estate or stock bubbles)
* When there's zero interest, it exacerbates the problem, because if you've got capital, it's impossible to find anywhere to invest it to get a return. Hence you're incentivised to put it into assets.
* Basically you're not seeing assets (houses/stock) going up in value, you're seeing money go down in value. It's basically out-of-control inflation, it's just that the inflation isn't spread evenly yet.
Disclaimer: These aren't my ideas, i'm merely parroting. But i thought they were clever and worth sharing.
Disclaimer: These aren't my ideas, i'm merely parroting. But i thought they were clever and worth sharing.