Quote:
Originally Posted by LouisVanDerWright
There's already $2 trillion in excess savings sloshing around in the economy from pent up demand and massive stimulus. That's not considering the helicopter drop that Biden is about to make. Most people I know are already plotting the hedonistic binge they are going to undertake as soon as things normalize. Shits about to get wild real quick, who knows how long until the bubble they are inflating pops, but there is going to be intense growth and inflation between now and then. Inflation is essentially a transfer payment to asset holders particularly those holding real estate due to the leverage in that industry.
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The Fed has been trying to get the US to have a consistent inflation rate of 2% since the 2009 financial crisis without much success. I wouldn’t bet on a lot of inflation. I’d be praying we don’t tip into a deflationary spiral which will make anyone with leveraged real estate a fool.