The Bubble Economy's Credit-Asset Death Spiral

Source: Of Two Minds
Published: Dec 11, 2022
Author: Charles Hugh Smith
Post Date: 2022-12-11 23:21:12 by Charles_Byrd
Views: 277

Who believed that central banks' financial perpetual motion machine was anything more than trickery designed to generate phantom wealth?

Central banks seem to have perfected the ideal financial perpetual motion machine: as credit expands, money pours into risk assets, which shoot higher under the pressure of expanding demand for assets that yield either hefty returns (junk bonds) or hefty capital gains as the soaring assets suck in more capital chasing returns.

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