Comments by "Hallands Menved" (@Hallands.) on "Stocks at current levels are worrisomely high: Jim Grant" video.

  1. Stocks are high because FR have been pumping money out in a futile attempt to increase investment (futile because the turnover can't increase when the average earnings are declining - people won't increase consumption ) and since interest rates are zero or negative, all the loose money end up in stocks! They may generally not increase their value either, but at least they pay dividends. It's a new, crazy scenario because all modern economies does the same. Pumping out cash would normally cause inflation and reduce import but increase export and reduce national deficit and allow for debt reduction. But all countries are doing the same, so nothing gives. Pension funds are meanwhile likewise growing. When something finally gives, you'd probably expect stocks and pension to plummet, but what would be the trigger? Neither investors, owners nor pensioners have any interest in rocking the boat. The insanely rich, the money vampires and their banks and rating firms might again do something unforeseen and momentous - maybe just for the hell of it or to increase their stranglehold on the world's people, values and governments, but they too may be very hesitant to risk anything overtly dramatic, because people and governments are by now aware of their existence and hidden powers and might suddenly decide enough is enough and simply finish the entire bunch off. My feeling is that when something finally gives, this will happen in ways never seen before, the world has changed that much!
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