Thread 513016693

if you watch or read about finances in the US all the morons just tell you to just blindly invest in the market and expect 7% adjusted for inflation annual returns, the problem is that assuming that the US GDP will grow by 2% adjusted for inflation (which is a big and generous assumption for many reasons), in 40 years time (when you retire) the US stock market cap (its already 213% of the gdp today) would be 16 times the GDP, at such a valuation the only way to justify such a cap is for the US public company's earning alone to be the entire GDP which make no sens and cant be possible, this bubble and ponzi scheme is not rationally sustainable even if the US become a total cyber punk dystopia entirely owned by big corporations and rich kikes (which is already on it way of becoming)

>>513016693 (OP)
Bro, line go up.

>>513016693 (OP)
yes past returns are not indicative of future potential
except in retard boomers heads since they've had line go infinity up their entire lives

>>513016870
the lines need to be justified by a reality and a rational or else they are bullshit impossible speculation/hopuim/bubble

>>513016964
>need to be justified by a reality
You don't understand jewish ponzi schemes at all.

>>513016940
>yes past returns are not indicative of future potential
yeah unfortunely most normies (even among mainstream finance bros) think they do as if it is some sort of a fundamental law of nature that need no justification

>>513016693 (OP)Are these not multinational companies that earn money from around the world, attracting investors from different countries who are betting on future growth and, as a result, pushing the share price above what its current performance justifies?

>>513016693 (OP)
That's the great thing about the stock market, you've got boomers dumping huge amount of their wealth into companys that are obviously fraudulent.

There's so many indian company's trading just for this and because there's little oversea they just phoenix and reappear later.

My landlord took out a loan of 20k just to buy into bitcoins.. not even the good ones. now he's 30k in debt and is trying to leverage it.

>>513017034
yeah i know, but how will they able to sustain it further, it will sooner or later crash and the longer it go the harder it would crash and risk the elite control over the masses

>>513017165
>Lol, said the scorpion, lmao.

>>513017117
most are not and most this company's wealth generation is in the US (ie most of the money they make end up in the US irrelevant where the product is made)

>>513016693 (OP)
If banks continue to pump credit into investment funds this ride won't stop. It is discretionary decision. Only force that might affect it is demographic shift.

https://singjupost.com/richard-werners-interview-on-the-tucker-carlson-show-transcript/

Link for more details. They will price you out of owning assets by boosting ours paper investment against real investment.

>>513017262
Fake not ours

>>513017135
unfortunely the boomers might all be dead by the time this shit crash hard

>>513017262
the problem is if the banks keep just pumping infinity credit to continue this it would only lead to either hyper inflations or mass defaults

>>513017538
Read about zombie lending.
It will hyperinflate asset prices. See the link, Werner is true Economist. It might convert to inflation only if there is less entries then exits from f financial market. See: boomers retiring en masse. That's why I mentioned demographic shift. That's also why they import immigrants

>>513016693 (OP)
As long as everyone keeps believing in a ponzi and there are no major withdrawals it can go on for a veeeeeery long time. Especially if the returns are not out of this world unreal like with Madoff guaranteeing an annual 15% return on investment.

>>513017672
>convert to inflation
I meant consumer goods inflation, of course

>>513017538
The high inflation + high employment option is also possible since labor is ridiculously cheap (constantly devalued through all means) while any "asset" incl housing would be unaffordable.

>>513017672
The problem with mass migration to cover the ponzi is that they need it at an even greater rate than what they've been doing in Uk France and Germany. Also UKs living standards are in freefall collapse and that as a by product of mass migration is also something that'll do its economic damage.

>>513016693 (OP)
You're wrong. The stock market was pumped up by government, just like house prices, in a policy called "The Wealth Effect". The idea is that if asset prices go up people feel wealthy and they spend more, stimulating the economy. They can also borrow more against their assets.

Since this is a government manufactured system government will not let it fail. If people's assets depreciate the economy will get fucked, see 2008. There will be mass riots. If people's 401ks collapse in value the older generations will vote for massive taxation of the rich to pay for their retirement. So what is their solution? The same as it always is, devalue the currency. When the currency goes down the value of assets goes up, inflation. Dollar down, stocks up. This is why interest rates were consistently lowered for 40 years, now that no longer works new methods will be used to inflate the money supply, Quantitative Easing, and maybe UBI.

Holding cash is how you lose. Holding assets which cannot be printed beyond demand is how you maintain value, Gold, BTC, a house, etc.

Of course the government policy they implemented was always retarded. Asset prices going up only helps people who own assets. They've risen so high that young people cannot afford to buy the biggest assets of their life, a home, therefore The Wealth Effect does not work on young people. In fact the opposite, they're disaffected. This was always the wealth extraction mechanism, pump up asset prices then after half a generation or when it stops working take off for new lands and repeat the scam. Jewing 101.