Biggest stock market bubble in history will come

So maybe you are right. IMF chief economist is warning the US feds against increasing interest rates but (nobody can predict these outcomes outright tho) But IMF is more afraid that it's the worst gamble. There's major debt buildups around the globe thanks to the debt bubbles exported since 2008. When US slows down their economy, the rest of the world can Catch a bad enough cold that in turn could hurt US back even worse. Beaucrats with finance degrees don't seem to realise that the world has changed, and shouldn't be so certain when a lot of new unprecedented things are happening all at once. I noticed how beaucrats keep thinking Sanctions will Work despite empirical studies over decades, show how wrong they are. It puzzles me why they keep doing that despite the harm. They don't seem to tolerate the fact they are not in control and do not have the power that they like to think.
www.cato.org/policy-...ctions#citation

www.aei.org/op-eds/t...onomic-landing/

Some of the many unprofessional odd reasons for inflation is Biden for political reasons, giving too much aid away when America didn't actually need that much and pretty much overheated the economy. And Feds also keeping rates near zero for too long a period.

So US may have no choice but to hike up rates to tame Inflation. Except you can't also just wish away economic decoupling, global debt buildups, end to Ukraine war and its impacts by shifting your domestic economic policy. The media will likely put the blame on the war or Covid, except before those two factors. A global economic undoing was already in progress anyways regardless of those more recent events. One of the deeper underreported factor is after 2008, western banks hoping to export their debt bubbles, started a policy of quantitative easing which convinced a lot of suckers in many poor countries to go on a borrowing spree but that policy started phasing out only 5 years later in 2013. Those countries who took those initially low interest loans, suddenly found their borrowing costs increasing sharply, interest rates literally doubling to around 10 percent for short term loans, while the long-term rates had jumped from 7 to 8 percent to 11–13 percent. The moral of that story learned by most of the world, is that you can't just assume that the future will be fine with low interest ISBs shaped by international (mostly western dominated) monetary markets.

So you have global south starting to desire an alternative to the western dominated monetary system and us dollars. The economic decoupling and the transition to move from a US dollar-based financial system to a non-US dollar one, is always going to be rough and trigger even more Inflation. Fast forward to today's Ukraine war and the Sanctions, and you can see countries starting to do so and economically decouple at a faster rate with BRICS and SCO growing, and also the price of oil being so high. The global economy isn't functioning the way it used to. Partially because of Sanctions and that the global oil industry has "oil friendships" between certain countries like OPEC (circumvent regulation and collectively reduce oil production) and they're not willing to be pushed by US dollar/American Sanctions to go against their own economic national interests. And the urgency by other countries like in South East Asia who are also getting tired of the King dollar and USA pressuring them and interfering with their economic interests, are become more motivated to not be too vulnerable to being caged in by Sanctions, which is why many countries are now diversifying from US and disengaging further (but not completely) from the dollar and consequently the US-led international monetary and financial system. US now wants price caps on oil which further injects uncertainty into the markets and hurts other countries' exports and it's hard to gauge the extent of that damage. But USA can't fix that by simply slowing down their economy.

markets.businessinsi...ion-cut-2022-10

www.eastasiaforum.or...mic-decoupling/

Not only this, the credit ratings of almost every prominent private bank in the United States have been downgraded. Prior to all this, Silvergate Bank, another institution dealing in cryptocurrency, also failed because of liquidity issues in the first week of March 2023. The way American financial institutions are falling one after another predicts a kind of economic doomsday for the Western superpower.
All these banks have a single story for their failure, which is directly linked to the interest on US Treasury bonds. As the demand for the US Dollar is decreasing in the world, these bonds are also falling, and in order to make them float, banks have no solution but to offer higher interest rates, which burn holes in their liquidity.

sundayguardianlive.c...mic-catastrophe


Nonetheless my point is despite all that, the crisis is still ultimately temporary amidst all the confusion. Uncertainty is natural during a period of unprecedented situations. But uncertainty and chaos won't be forever. Eventually things always get settled down and so keep your cool if you are in stocks. For many normal people, it will likely be tough tho. As the US wanting to tame Inflation, is hiking up rates. And there will always be consequent casualties including job losses whenever they do that and people shouldn't be too surprised to see a rise in the number of institutions failing in the meantime, as they were simply vulnerabilities. However US really is just out of options and buying time and hoping the war will end soon and that everything will be back to normal and all root causes for inflation are all resolved while they slow the economy down. And they hope recession will be mild and then afterwards, the investors will come in all reassured after to bring the economy back up in the recovery in the aftermath. That's their plan where you can see they are actually not in control of everything and just hoping for the best. Which isn't that reassuring as it involves a lot of things that are hard to control. So in the end it's like how 'Dr. Doom’ or Nouriel Roubini says; "The US authorities are just buying themselves time but; they are actually making an economic crash inevitable". So yeah, it will more likely than not, come inevitably but it will pass after a period of time. However the "biggest" stock market bubble?? You can't know that for a fact and I doubt it will be the biggest. No major reason for hand wringing and think that economic crisis is end of the world, as it is likely be momentary and hurt only for a relatively fleeting time. But be prepared for a a hard landing if you are worried. And even if stocks tank and you can't handle losing all that money then maybe investing is not for you. Because nowadays are unprecedented uncertain times where about anything could happen lol.

finance.yahoo.com/ne...-162320165.html