Quote:
Originally Posted by FC4
Not that hard to believe, actually. What we're seeing all ties directly to monetary policy. Capital is itching to find a return anywhere it can.
I don't disagree that it will, but to anyone who thinks this bubble will burst...what will cause it? Modern economies are extremely resilient. Look at a long-term chart of the S&P and think about what was necessary to produce the last two dips and how significant they look long after. In '08, it required the global financial system to collapse. In '20, it required a global pandemic which brought the developed world to its knees. What's it going to take to really knock the economy on its ass? Earth colliding with another planet? The Mayan calendar ending? Porsche changing the 911 to front-engine?
As economies mature and develop resilience to external shocks, more extreme shocks are required to cause a meaningful downturn.
I've been buying ultra low-mile, museum-quality cars from the 90s since last year. Being able to borrow money at LIBOR +125 points makes pretty much any store of value very attractive. I've never been this leveraged in my life as I see no reason to be in cash right now.
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I hope your right. I just listen to people who know more than me. My buddy is just worried about all these people not paying rent and mortgages. At some point, someone will be responsible. The bank will want their money. Tons of people earning more money on unemployment for a year now. That will be ending soon. It just seems like something has to give. You think a sheet of plywood is going to stay at 80 bucks? Everything is just so inflated. Like I said, I have no idea about all this stuff. But if a year ago someone told you we would go through a world wide pandemic and during that homes and cars would be selling like hot cakes. I would call bullshit
