A brief history of (stock) economics

Economy
1

Artificially lowering the Fed Funds below 5% was a “temporary” response to 9-11 and the dot.com crash.

Back when FFR was >5% America built

  • Intel
  • Apple,
  • Amazon,
  • IBM
  • Google
  • Texas Instruments
  • the Silicon Valley
  • etc.

With FFR<5% we built

  • two housing crashes,
  • the Lehman moment, the collapse of Bear Sterns
  • bitcoin,
  • FTX
  • NFTs
  • real estate in the metaverse
  • memestocks,
  • ARK and
  • SPACs

It is not a coincidence

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2

Now is not then.

There is a difference between now . . . . and then.
They are not the same.

I believe this little illustration shows the difference.

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3

This is from Oct 21
It illustrates the nature of “this” boom.
When money is “free” people will invest in anything.
Investment professionals investing YOUR money will invest it in anything.