In the same month that marks the 10th anniversary of the collapse of Lehman Brothers, the Dow has rocketed to another all-time high. But the shadow of the worst U.S. economic downturn since the Great Depression still remains as we take a look at what liquidity levels in today's market could mean for the U.S.
Are We Drowning in Liquidity?- Video Transcription
Patrick Brunson: 00:01
So this month marks the 10 year anniversary since the 2008 financial crisis. Since then, we have seen the stock market increased by more than 300%.s of today, we have now seen the market increase to a new all time high surpassing January's previous all time high. So the big question that many people are asking is how and why? Why is the market hitting all time highs when quite frankly, we are only 10 years from the last recession. And if you look at our current situation, we didn't exactly fix our problems. We ultimately just added more liquidity to it. So a lot of people want to say that it's Trump's, you know, his policies and his changes and the way he's choosing to run this country. Some people say it's from economic growth. But if you look at the fundamentals behind all of this, you can see that over the last decade it's all been due to artificial stimulus.
Patrick Brunson: 01:06
The Federal Reserve printing money out of thin air to prop this market up. It's called quantitative easing. The thing that not many news channels are discussing, however, is the fact that we are no longer printing money. That's been the main source that's been propping up this market over the last eight to 10 years causing it to hit a new all time high because the economic growth at the certain percentages that we're at right now just don't make sense with where the market currently stands. So if the fed is moving forward with raising interest rates and the fed is moving forward with quantitative tightening. the question is, is how much higher can the stock market go and when the next correction begins, when will it happen? Thank you for watching U.S. Money Reserve's Market Insights. If you call the number on your screen now, a USMR representative will provide you access to a physical copy of ‘why this bear market will be different- seven reasons not to ride it out‘. For instant access to this month's literature, you can use the link in the description below to get your own e-copy sent to you right away. That's all for today. If you have any questions in regards to the topics, obviously you can leave a comment in the comment section and we will address it, or you can call us here at U.S. Money Reserve, and as always, thank you for tuning in.