The Credit Is Over, The Party Begins

A fund manager tells us when he thinks the next recession will come

Source: Netflix

It is a truism that central banks control markets. They act as alchemists without regard for the common good. They are responsible for printing money, generating a false sense of wealth. Moreover, when this expansion of money takes place, interest rates are lowered so that ordinary citizens can use it.

In this way, citizens have money to spend on all kinds of liabilities that generate an adrenaline rush at the moment of purchase and turn into debt after a week.

The more conservative try to invest it, encouraged by their neighbor, or abnormal market returns in recent years. The latter group is the type of investors who invest purely based on yield and who, as a rule, jump on the bandwagon in the last phase of the cycle when the final sprint occurs.

This unprecedented expansion of money generates inflation, which ordinary citizens suffer every time they fill the shopping cart or go to the supermarket. This is because, as we mentioned before, free money has a kick at the mome…