Opinion: The uncomfortable stock market truth: This late-pandemic crash, while painful, is necessary

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The uncomfortable stock market truth: This late-pandemic crash, while painful, is necessary

No one wants to hear this, especially not someone sitting on a stock portfolio they had dreams of milking through retirement, but it must be said: The current market crash is necessary. And unavoidable.

By now it is clear to most Canadians that ultralow interest rates fuelled the unprecedented housing price boom since 2015 – and particularly so since the pandemic erupted in March, 2020, when rates were slashed to zero. What isn’t talked about nearly enough is that the exact same phenomenon played in venture capital and public stock markets.

The dream cure would be a soft landing that rids private and public markets of their froth. But the uncomfortable truth is that such a thing is next to impossible.. When investors gain 10 per cent, they feel good, there’s an extra bounce in their step. But when they lose the same amount, it’s as if someone has died. And the bad vibes become contagious. Which is why even a venerable business such as Netflix Inc.Who’s to blame? Pretty much everyone, in their own way.

Then the pandemic erupted, and the outrageousness set records that were once unthinkable. Western governments and central banks flooded their financial systems with cash, and much of it flowed into financial assets.

 

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“The current market crash is necessary. And unavoidable.” I see the writers at have rebalanced their portfolios… cdnmedia

Time for the class war to restart as a two sided affair rather than as a one sided sabotage Living wages pegged to productivity, dignity at work and social mobility Mass mobilization, general strikes and direct action ftw Kick them in the capitalism until they beg for mercy

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