“Giant bubbles are once again inflating all over the financial world — creating a potential problem for Washington in the coming months. From meme stocks to cryptocurrencies, tech stocks and the rage for ‘Special Purpose Acquisition Companies,’ or SPACs, risks are clearly rising,” Politico reports.
“Wall Street pros and Washington policymakers know that some or all of these bubbles could explode in spectacular ways. But nobody really knows what to do about it… The perfect ‘Goldilocks’ scenario could still arrive: faster economic growth with limited inflation, perhaps gently letting the air out of the biggest bubbles. But darker scenarios exist, including a big spike in inflation, a popping of all of the bubbles at once … and an economic recovery that hits turbulence.”Save to Favorites