asyncmind on Nostr: When the Fed injects liquidity into a stalled airplane (aka the financial system on ...
When the Fed injects liquidity into a stalled airplane (aka the financial system on the brink), it’s like firing the emergency afterburners:
Engines roar back (for a while): Risk assets like stocks, crypto (yes, even Doge), and real estate take off. Liquidity flows back into the system, risk-on returns.
Zombie companies start dancing: Weak firms that should’ve died suddenly get lifelines. Malinvestment resumes.
Trump Tariffs look less painful: The liquidity cushions the blow of higher import costs, at least short term. Inflation might tick up, but they hope growth masks it.
The pilot (Fed) becomes the market's god: Everyone stares at the cockpit, not the runway. Fundamentals become irrelevant.
But—
Flight path curves dangerously up: Asset bubbles inflate. Everyone feels rich again, but the engines are overheating.
Eventually, gravity reasserts: More liquidity means more debt, more distortion, and eventually… stall again.
So yes, the Fed can inject liquidity and give the illusion of flight—but they can’t change physics. Eventually, it’s stall–burn–repeat, until the wings snap off or Bitcoin eats the jet.
#Doge shakeout and #TrumpTarrifs work only if Fed inject liquidity.. Else it is a stalled airplane .. mid air
nevent1q…4nsa
Published at
2025-04-18 01:44:01Event JSON
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