Economy crash =/= stock market crash?

Malkytheheed

sevenhills said:

A bit of a wobble today, the FTSE is down 1.7% and my Asia stock is down with the building up of tensions between China and Taiwan.

Fuel shortages, lack of workers, troubles with COVID in other countries. More QE needed?

We are the brink of rampant potentially parabolic inflation. The LAST thing we want to be doing is printing more money ala QE! 

sevenhills

Malkytheheed said:

We are the brink of rampant potentially parabolic inflation. The LAST thing we want to be doing is printing more money ala QE! 

I am sure the BofE have a lot of things to consider. Back in the days of pay restraint, pay rises were said to be inflationary, now the Conservatives are encouraging it, there is even speculation of a hike in the minimum wage.

Inflation is already predicted to top 4% by the end of the year.

tebbins

Malkytheheed said:

sevenhills said:

A bit of a wobble today, the FTSE is down 1.7% and my Asia stock is down with the building up of tensions between China and Taiwan.

Fuel shortages, lack of workers, troubles with COVID in other countries. More QE needed?

We are the brink of rampant potentially parabolic inflation. The LAST thing we want to be doing is printing more money ala QE! 

1. That's not what parabolic means
2. Who is we

3. The velocity of money has slowed, therefore a greater money supply is needed to prevent deflation. If you think inflation is parabolic, by that analogy deflation is hyperbolic.

eskbanker

tebbins said:

Malkytheheed said:

sevenhills said:

A bit of a wobble today, the FTSE is down 1.7% and my Asia stock is down with the building up of tensions between China and Taiwan.

Fuel shortages, lack of workers, troubles with COVID in other countries. More QE needed?

We are the brink of rampant potentially parabolic inflation. The LAST thing we want to be doing is printing more money ala QE! 

1. That's not what parabolic means
2. Who is we

3. The velocity of money has slowed, therefore a greater money supply is needed to prevent deflation. If you think inflation is parabolic, by that analogy deflation is hyperbolic.

It all sounds like a load of -bolics to me....

Malkytheheed

tebbins said:

3. The velocity of money has slowed, therefore a greater money supply is needed to prevent deflation. 

You couldn't be more wrong I am afraid. We are on the verge of very high inflation. 

Prism

Malkytheheed said:

tebbins said:

3. The velocity of money has slowed, therefore a greater money supply is needed to prevent deflation. 

You couldn't be more wrong I am afraid. We are on the verge of very high inflation. 

Such confidence in your theory but nobody knows. All that has happened so far is a surge this year down to very low inflation last year. It might continue and it might not.

grumiofoundation

tebbins said:

Malkytheheed said:

sevenhills said:

A bit of a wobble today, the FTSE is down 1.7% and my Asia stock is down with the building up of tensions between China and Taiwan.

Fuel shortages, lack of workers, troubles with COVID in other countries. More QE needed?

We are the brink of rampant potentially parabolic inflation. The LAST thing we want to be doing is printing more money ala QE! 

1. That's not what parabolic means
2. Who is we

3. The velocity of money has slowed, therefore a greater money supply is needed to prevent deflation. If you think inflation is parabolic, by that analogy deflation is hyperbolic.

1. Simplistically a parabola is a curve that is roughly U-shaped. Although since the 'U' can point in any direction (for example a U (y = x^2), or an upside down U (y = -x^2), or a C-shape/a U on its side (y^2 = x)) I suppose one could argue that saying 'parabolic inflation' is mathematically ambitious?

3. Not sure I see your logic here that is inflation is parabolic deflation must be hyperbolic?

Hyperbolic is not the opposite of parabolic. A hyperbola is a curve composed of 2 branches (that are infinite bows) that are mirror images. 

Thats the mathematical definitions. Parabolic can also mean allegorical, something that teaches a simple lesson and hyperbolic can refer to language that exaggerates the truth (and although I suppose you could argue these are opposite I don't think they can necessarily be applied to inflation and deflation?) 

Diplodicus

Too much masterclass. 

Can anyone opine whether investors in equities shall be richer or poorer next week/year/decade?

Prism

Diplodicus said:

Too much masterclass. 

Can anyone opine whether investors in equities shall be richer or poorer next week/year/decade?

Well it would depend on the odds, but I wouldn't take a bet on any of those time periods as they are too short. 15 years+ I would start to hesitantly say richer.

lozzy1965

Diplodicus said:

Too much masterclass. 

Can anyone opine whether investors in equities shall be richer or poorer next week/year/decade?

I can.  Investors will be richer - or poorer - in all of those timeframes