> […] most of the money supply creation directly lead to stock price inflation and largely lead to a huge bubble in the stock market (that is largely still there) where basic fundamentals of a company did not matter to the stock prices.
You claim that the bubble was caused by the money supply (e.g. QE†), but bubbles have existed even with fixed money supply, so what evidence can you provide actually showing the causal link?
We now have monetary headwinds (e.g., rising rates) and while there was a correction / bear market (≥20% drop in 2022), the headwinds have continue while the market has recovered.
† Which, BTW, is is not really adding new assets, but is rather an asset swap:
You claim that the bubble was caused by the money supply (e.g. QE†), but bubbles have existed even with fixed money supply, so what evidence can you provide actually showing the causal link?
We now have monetary headwinds (e.g., rising rates) and while there was a correction / bear market (≥20% drop in 2022), the headwinds have continue while the market has recovered.
† Which, BTW, is is not really adding new assets, but is rather an asset swap:
* https://www.pragcap.com/the-exploding-u-s-money-supply-myth/