[jganetsk]

There's a difference between economics and finance. It is possible to have real economic problems while having sound financial flows. That's what's happening now. Inflation is the consequence: there's more money chasing the same (or fewer) goods. That's not to say that a crash can't happen... because it did in 2020. It can happen again. But under these conditions, we can expect an aggressive recovery (like we just had).

> yet we are in the middle of pandemic, millions get sick every day, inflation 30yr high, supply shortages

None of these things impact the aggregate profitability of the corporate sector. Please read "Where Profits Come From" [1]. The Kalecki-Levy profits equation says:

Profits before tax = + Investment – Nonbusiness saving + Dividends + Corporate profits taxes

Profits for the most part come from the "nonbusiness saving" term, which is the government budget deficit minus the trade deficit minus household savings. The numbers are looking very good. [2]

> edit: i can't help but think there will be a counter reaction to the Fed printing dollars recklessly in 2020

> and i'm even more scared Fed will go on a printing spree again to keep the current bubble from popping

It's fascinating to me that in times of outsize fiscal stimulus, people continue to blame monetary policy on all of our economic woes. If you think that monetary policy has a much larger impact than fiscal policy, you have it backwards. Monetary policy has far less impact than is commonly stated. The Fed does not really print money, it swaps one highly liquid US government asset for another. And the size of bank balance sheets do not change when this happens. And repeat after me: banks cannot and do not lend out reserves [3]

[1] https://www.levyforecast.com/assets/Profits.pdf

[2] https://seekingalpha.com/article/4475023-white-house-fed-inf...

[3] https://www.hks.harvard.edu/sites/default/files/centers/mrcb...