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We're not going to see a dip until the Fed stops committing literally infinite money to make sure line go up. The Fed has already started to buy corporate bonds, which is nuts. I would expect if we saw another temporary crash they'll start buying stock, which again would be unprecedented by they seem committed to line go up at all costs. If we see a real crash it's going to be epic, and it's gotta be so big that literally infinite money cannot stop it. I agree that the fundamentals of the economy are running on air, but it's been that way since like March. It's almost entirely disconnected itself from material reality, so who knows when we'll see a dip!
Imagine the Fed just slowly accumulating more and more finance capital after every crash until they eventually own every publicly-traded corporation.
My favorite thought experiment to play with people is "what if, instead of printing $8 trillion and giving it directly to banks to just speculate and sit on, the Fed bought every supermarket chain in the United States and used its infinite money printer to print the money to keep buying the goods, and then they just make everything in the supermarkets free." It's perfect. The math works out great. In fact, it's way cheaper! And it's very hard to argue that this would not be a better economic stimulus than just giving money to banks. The only argument against it is "but that's communism!!!" or "line must go up."
that's kind of the situation in Japan
https://asia.nikkei.com/Business/Markets/Bank-of-Japan-to-be-top-shareholder-of-Japan-stocks
Absolutely. The dip in 2019 should have been bigger. The dip in 2020 should have been way bigger and longer. The Fed has been doing quantitative easing since 2008, to the tune of conjuring up roughly $8 trillion in the space of 12 years. They have provided infinite liquidity to be the lender of last resort, they're buying up corporate bonds at a crazy rate, and are absolutely committed to making sure the market is stable. The markets have been kept alive by the Fed money printer going brrrr for years now. And imo it won't stop until the USD loses reserve currency status.
Both dips come on the heel of interest rate rises. The last time wall St panicked, Fed put the rates to zero. So unless there's change to rates, I don't see a dip coming.
