How wii the amrket be affected in the future?
I have viewed charts of past recessions and read of the 1919 bank failure along with many viewpoints and opinions of our troubled economy. But once unemployment begins to level off at whatever % that may be, housing inventories begin to stabilize, and banks begin to make loans,how will our deficit of what should be well over a trillion $ impact the stock market both immediate and say 5 to 10 years beyond?
Answers
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readytoretire answered 10 months ago …
I think most of that is yet to be decided. Right now, the pouring of money into the system is not inflationary. As the economy starts to improve, it will start to cause inflation if the government doesn't start drawing the money back off. And that is where it will be decided. And I don't have much faith in the government being able to say we are tightening up credit to halt inflation when it will cause people to remain out of work longer than they would have too if the government stayed put. So I think they will allow the credit to drive inflation as long as they can stand it to get the most people back to work. And that means that we will go through a period of high rates to get the inflation back out.
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