This discussion is obvious…but still, worth repeating in the hope that some ‘little folks’ might yet get the memo and take steps to protect themselves before it’s too late again. See: Why fund managers may be right about the Fed:
“What a lot of hedge fund managers are worried about is the inflation in asset prices, not cost and wages,” said James Chanos, a noted hedge fund manager who is left of center. “This is leading to recurring booms and busts, which in addition are exacerbating income inequality.”
The Fed has explicitly welcomed rising asset prices as a sign that its monetary policies are working, as lower rates push investors to put their money to work. But something is wrong. Companies are sitting on their profits. Businesses aren’t investing and hiring enough.
In fact, the Fed may be inadvertently making things worse. What if it succeeds in bringing average people back into the markets right at the top? Is the Fed setting these poor suckers up to come in to buy from the hedge fund managers?
“The people you are trying to help don’t get the message till the end of move,” Mr. Chanos said. “You keep impoverishing them.”
Making matters more grave today than 2000 or 2008, is that the people who have accumulated the bulk of the savings and financial assets in the economy today are boomers now ages 53 to 71–9 years older than the last bear market–with that much less life time to try and make back losses.
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