Hotter Inflation Chills Stock Market- Ep 874
The Peter Schiff Show Podcast
00:00
Why You Shouldn't Overspend on Hiring
There are a number of reasons for that lag. One was, of course, the obvious understatement of consumer prices and producer prices in those official measures. Another factor was that the money entered the economy through the financial sector. And so the initial impact was seen more in asset prices rather than goods prices. Stocks didn't go up because the companies themselves were more valuable. It was the PEs that went up. Asset prices rose as a result of inflation. When inflation causes asset prices to go up, nobody has a problem with that because people who own assets feel richer as a result Of inflation pushing up asset prices so they don't complain. That's one of the reasons we have larger budget
Transcript
Play full episode
