Retards are now blaming tariffs for the great depression
(twitter.com)
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The Great Depression started with the stock market collapse, but why did it collapse in the first place?
Because it was massively over-inflated, a Ponzi scheme, "tulip futures" style.
Everyone & their dog bought stocks. They were told it was 100% safe with a good return guaranteed. Banks gave out loans for people to buy stocks! Hint: they don't do THAT any longer! Unless you offer collateral well in excess of the loan, not the stocks themselves as collateral.
So when it finally, inevitably, crashed? Not only were huge numbers of people bankrupted? The banks themselves took a mighty hit. Investment money vanished, business went under, banks failed & etc. Normally an economy can bounce back in a year or two, but not that time.
Just from my memory, not recently researched or anything.
The point being: under Biden there were the seeds of what caused the Great Depression being sewn. The markets are hyper-inflated now. The two options are "correction" (crash) or building the economy to match the high markets. IMHO. Clinton avoided a crash by crashing the economies & money value of other nations. They won't be falling for that again.
There's a third option, hyperinflation, but the USD's status as the world's reserve currency lets the US export most of its inflation.
Well, it used to, until the US weaponized the Dollar against Russia, creating a scramble to the exit by the BRICS countries.
True! I forgot that one. Justin Trudeau was using it here in Canada to pay for his progressive WEF policies: just print more money! Biden was hitting the printing press pretty hard too, so our Dollar Cdn didn't go down too much vs the US Dollar. But still.
Lowering the value of currency lowers the value of that nations stock market too. Like a slow crash, the actual value drops without that "jumping out a window" sound effect. AAAaaaa! (splat)
I can't afford bread, but look at my gainz! Diamond hands!
yes they do, It's called a Portfolio Line of Credit.
Pretty sure the entire loan isn't backed by the stocks it bought, eh? Then the Banks would just invest it themselves and make even more money. They want more $$$ in collateral than the stock value, since it could change in a day.
If I'm not misremembering they give you a loan requiring you buy stocks that pay dividend, and reinvesting all dividends in where they came from, allowing you only to withdraw any capital gain above cost basis, at your own tax burden, until you pay the debt otherwise they get the matured stock value plus being able to claim some kind of tax benefit.
That sounds really dirty... so banks would do it if it had a government guarantee or something. I'd still think they'd require outside (of the stocks) collateral though.