Yeah ... they are all assuming that QE will continue for ever, that lending rate rises of 0.5% pa will be manageable, that China's financial voids are imaginary, EU Bank balance sheets will stay strong in the face of lending rate rises, the BRICS are booming and the rest of the world gives a toss about mortgage distress rates in Australia (it doesn't ).
The masses also believe that Trump can significantly reduce taxes and increase spending on the never never. They believe that raising tariff barriers will lead to a net benefit for the US and that the USD does not and should not act as a reserve currency.
Maybe they are all correct. The Trump family will face certain bankruptcy if the interest rates they pay rises a few percentage points. Trump is heavily leveraged on the bloated values of his properties BUT does he control Powell or the rest of the Fed??? There's a risk.
Another highly likely risk event is President Pence taking the Oath of Office. Pence is a FRUGAL MONEY MANAGER. A HAWK!
).
