when they continue to inflate even if they're inflating under unusual circumstances and again politicians today love to take credit for the markets when they rise which we saw under trump but under biden and jerome powell as well making your voters rich is a great way to be a popular statesman even if there's no real substance to that newfound wealth and even if that wealth will just disappear further down the line in the bull market of the NUMBER_TOKENs the federal reserve kept cool loan rates artificially low which helped to boost the bull market and expanded the money supply and encouraged investment now the best way to explain cool loan rates is to basically consider them interest rates for margin accounts today basically the fed kept margin cheap they made sure interest rates for those who wanted to borrow money to bet on the stock market were low which encouraged people to take out margin and buy stocks which forced price upwards by increasing demand and it boosted the bull market further this debt was also essentially printed out of thin air as is so often the case when it comes to fractional reserve banking so not only was this money cheap but it also represented an expansion of the money supply or as it was simply known back then inflation of course there are lots of similarities between the NUMBER_TOKENs and the NUMBER_TOKENs here again margin debt is and has been incredibly cheap for years now it is not unheard of for relatively normal people albeit with good credit scores to have margin at a rate of one percent now in a normal inflationary environment where cpi sits at two or three percent then that's already a great deal and most people would jump on the opportunity to acquire some debt and invest it but then when you consider the fact that over the last year inflation has been sitting above five percent for months now and is now actually touching on seven percent real interest rates for margin debt are something like negative six percent a year that means that even if you don't invest the money or even if you do so extremely poorly it would still make sense to take out margin and use it on the markets after all it seems almost impossible to lose the markets are booming and rates are low when has there ever been a better time to be irresponsible now of course in recent years just like in the NUMBER_TOKENs we've seen a huge expansion of the money supply and with that huge inflation when it comes to asset prices the similarities between the economic environment that led to the great depression and today seem to be growing but it doesn't stop there in the NUMBER_TOKENs the crazy high investor sentiment led to the belief that there was little to no chance people wouldn't be able to repay their loans which led to the deterioration of outstanding credit basically because the markets were so bullish companies were so successful and people were feeling so wealthy they all thought that they could repay their debt no matter what happened so they took out riskier and riskier debt and because the banks thought the same thing they gave out this riskier debt as well now there are similarities between this and the markets today levels of debt in the world today are soaring by pretty crazy amounts according to pretty much every metric and we are seeing people pushing themselves to take out bigger and bigger mortgages to chase rising house prices as most people believe that the housing market is only going up and they'll always be able to make their repayments but the really eerie comparison between the NUMBER_TOKENs regarding the quality of debt is with the run-up to the NUMBER_TOKEN housing market crash where banks really let loose and almost anyone was able to take
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