Peter St. Onge

And it's kind of weird if you think about it.

But the reason is because the Fed is so dominant in markets now that stock markets in general, markets across the board understand that if anything bad happens, if you lose 100, the Fed will give you 200.

Like the Fed will dump so much money into the market that it'll feel good.

You saw that during COVID, right?

So for a moment there, we had literally locked down 40% of GDP, right?

We had just about canceled the entire economy.

And then look at stocks.

Why?

Because the Fed dumped, I think at the time it was $9 trillion that they ultimately dumped in, which is like 40% of all the money in the world, all of the dollars in the world.

And then the rest of the world did as well.

So, you know, the investors absolutely made out.

Before we were talking about, you know, sort of the K-shaped economy, you got the people on the top part of the K. The people on the top part of the K loved the Federal Reserve, wouldn't

Whenever anything bad happens, all that money gets dumped out, and it doesn't get dumped down the main street because of QE, because of how they inject it.

They inject it in the financial markets.

Injecting it there means that the rich people get it first.

They get to spend it before the inflation took off, something called Cantillon effects.

But the end result of it is that if you understand that the Fed is causing the business cycle, the business cycle does not exist on its own.

Business people do not suddenly get really stupid all at once and then get really smart again two years later.

It's not how it works.

Right.