“Goldilocks” was an affectionate reference to an economy that was not too hot and not too cold, but just right in terms of growth.
But in the case of what has happened since the Fed began injecting liquidity into markets by buying Treasurys and other debt, this may be more a story of Goldilocks with a bit of a substance abuse problem.
“As long as we have continued stimulus it’s like a market on crack,” says Keith Springer, president of Springer Financial Advisors in Sacramento, Calif. “You keep throwing crack at it and it’s going to keep going up. Eventually you have to go through withdrawal, and then the bubble bursts.”
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