Loading ...I doubt people will be diving into 5 year CDs at the bank. However, if real estate and stock values decline, they are the same as money supply. So in that case, the falling values money supply alternatives can evaporate.
Like a $1 million dollar house or brokerage account falling in value down to $1/2 million, one half of the owners investment, $500,000 would disappear, evaporate. Then the Fed’s balls would get bigger, and add to the money supply, by dropping rates again.
A lot of charts I see look like the higher rates talk scared the markets down, and caused an over reaction down, and many bouncing back up. Like they realize the “higher” rates are still too low, not really high.