It’s like a dam broke. And now higher interest rates and mortgage rates for much longer, with lower asset prices, as the Everything Bubble gets repriced.
Biggest investors in single-family houses: “We need to be patient and allow the market to reset.”
One of the most important dictums in finance is this: “Don’t fight the Fed.” And this could get ugly.
Shedding jobs, offices, and warehouses. It’s kind of sobering. Reality has that effect, after a drunken binge.
The USD had a heck of a ride, which kept inflation from spiking even further. But it may not last much longer.
That’s what’s different this time: Stuff blows up because of leverage and cascades through the crypto space because everything’s interconnected. Unlike prior “crypto winters.”
This crash beneath the surface showed something had broken, that the magic had died, that hype and hoopla were suddenly unable to carry the day.
But we’ve had it so good for so long. And it was so easy, and it made everyone look like a genius.
Dotcom Bust 2 has begun. Only bigger.
The dollar’s role as dominant global reserve currency is at risk if the Fed fails to crack down on inflation.