You’re mostly citing opinions. Searching out opinions that are consistent with your own views is a perfect example of an echo chamber.
Again, inflation and money supply/velocity are different things and are strictly defined. Inflation has been negligent despite and changes in the underlying money supply.
Please do some research on stock valuations. They correlate very strongly with things like corporate profit and cash flow. Those are both at record highs. In other words, the fundamentals support the valuation. That’s not the case in a bubble when the valuation goes off the rails.
Yes, the Fed relieved a credit crunch by, duh, providing credit. Exactly what they are supposed to do.
1. See above about fundamentals
2. Rates should not be set with the goal being to ensure a return for those that want it or require it. Nor should people have any expectation of such. To say something like “banks should always pay at least 3% so people with savings can earn interest” is highly ignorant (I actually hear/read this).
A true free market would be very bad for almost everyone. I personally believe our markets should be more “free” but nowhere near a true free market i.e. no rules. No one if forced to do anything by the Fed.
The Feds job is to manage employment and price stability which has been overwhelming determined to be an environment of moderate inflation. Interest rates are one of the main tools they use. I’m not going to go into detail but please look into the magnitude of the recent recession; it’s similarities to the Great Depression and the different responses by the Fed.
There were consecutive years of double digit GDP declines during the GD, that’s deflation; it’s really, really bad. And you are advocating for it.
3. Is there a reasonable expectation, again based on fundamentals of the return? Stocks average ~10% a year over the long term. Is it speculating to put my long term money in stocks? If Apple comes out with a new product that I think will be a hit so I buy some shares am I speculating? The price of oil has dropped and rebounded several times in this generation alone. I have every expectation that it will rise again.
4. Sure.
5. Fairly large in context to what? 300MM people? 7B people?
