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cvalue13
·Only because it touches on pricing bubbles of luxury assets like watches, I’m sharing this rather good (if alarming) long format from Politico about Thomas Hoenig, formerly of the US Federal Reserve:
The Fed’s Doomsday Prophet Has a Dire Warning About Where We’re Headed
“While Hoenig was concerned about inflation, that isn’t what solely what drove him to lodge his string of dissents. The historical record shows that Hoenig was worried primarily that the Fed was taking a risky path that would deepen income inequality, stoke dangerous asset bubbles and enrich the biggest banks over everyone else. He also warned that it would suck the Fed into a money-printing quagmire that the central bank would not be able to escape without destabilizing the entire financial system.
On all of these points, Hoenig was correct. And on all of these points, he was ignored. We are now living in a world that Hoenig warned about.”
Importantly, I didn’t share this to stoke a broader political/financial-policy discussion, which should probably be avoided
Instead, only to focus on the narrower topic of the increasing availability of cash, inflation, and asset bubbles, as it relates to skyrocketing watch prices.
The Fed’s Doomsday Prophet Has a Dire Warning About Where We’re Headed
“While Hoenig was concerned about inflation, that isn’t what solely what drove him to lodge his string of dissents. The historical record shows that Hoenig was worried primarily that the Fed was taking a risky path that would deepen income inequality, stoke dangerous asset bubbles and enrich the biggest banks over everyone else. He also warned that it would suck the Fed into a money-printing quagmire that the central bank would not be able to escape without destabilizing the entire financial system.
On all of these points, Hoenig was correct. And on all of these points, he was ignored. We are now living in a world that Hoenig warned about.”
Importantly, I didn’t share this to stoke a broader political/financial-policy discussion, which should probably be avoided
Instead, only to focus on the narrower topic of the increasing availability of cash, inflation, and asset bubbles, as it relates to skyrocketing watch prices.
