Centuryfarm - 3/28/2020 08:52
It doesn’t matter how much liquidity is injected by the fed. During deflation all money is sucked up by the economy. The job of the market is to find where it’s true value is. The Dow through irrational exuberance rallied higher then what its true value was. Now we are in price discovery and the market will collapse lower then it’s true value should be. CF has targets in mind and have shared them openly.
Derivatives suck up liquidity... most people think value is destroyed when market drops... reality is there is always someone somewhere on the opposite side of market... wealth is transferred... so the unrealistic markets via stock buy backs isn’t destroyed... which causes the same scenario over and over again the only
Difference is the time between boom and bust grows shorter and power and wealth is consolidated into fewer and fewer hands... over 1400 CEO’s resigned right before this crash they took their money and went home and shorted the market because they knew what was coming... they created more wealth = less liquidity..... fed creates liquidity out of thin air and CEO’s buy in at bottom and create more wealth so you get the idea... they took the average joes wealth... even if average Joe stays in the market and rides it back to 30-40k he has less purchasing power than he did before the crash... and we do it again until a happy meal costs 150 bucks
Edited by mfro629 3/28/2020 09:23
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Dow down 915
