My 2 cents on it is that this isn't a bubble. It's just massive inflation that hasn't arrived at the consumer just yet. The pandemic created a massive problem for economies, but that problem existed pretty much globally, so we didn't see any big shifts between countries. But what resulted was that every government worldwide created completely bonkers amounts of liquidity out of thin air and injected it into the markets so the economies stayed afloat.
The good news is: They pretty much succeeded with that. We're all still here despite revenue generation for whole industries being frozen for more than a year.
The bad news is: All that liquidity mostly ended up in just a few hands, and now it needs to go somewhere: The recipients at the end of the chain keep outbidding each other for a finite supply of value-keeping assets. Everybody is flush with cash with no place to park it.
It may look like a "bubble of everything", but it's just the biggest increase of monetary supply we've ever seen in a long time.
What to take from there and what will happen next, I don't know though. The usual relief valve of raising interest rates won't work anymore without making the debt level quickly unmanageable for governments. Usually I have a hunch on what will happen next, but this time I'm stumped.
I also may be completely wrong.
The good news is: They pretty much succeeded with that. We're all still here despite revenue generation for whole industries being frozen for more than a year.
The bad news is: All that liquidity mostly ended up in just a few hands, and now it needs to go somewhere: The recipients at the end of the chain keep outbidding each other for a finite supply of value-keeping assets. Everybody is flush with cash with no place to park it.
It may look like a "bubble of everything", but it's just the biggest increase of monetary supply we've ever seen in a long time.
What to take from there and what will happen next, I don't know though. The usual relief valve of raising interest rates won't work anymore without making the debt level quickly unmanageable for governments. Usually I have a hunch on what will happen next, but this time I'm stumped.
I also may be completely wrong.