When Will It Pop?

How Far Will the Stock Market Fall?

When will the stock market bubble pop and how low will it go?

That depends on how much massive money printing occurs, how long it takes for businesses to significantly raise prices (inflation), and how much inflation causes rising interest rates – the final straw that will pop the bubble and crash the market.

Try our interactive model below to see for yourself

First, try your various guesses at how much massive money printing the Federal Reserve will do to support the stock market, protect bonds and the dollar, and keep the government running.  [Click here for details]    

Next, play around with the number of years you think it will take before significant inflation kicks in.  As we point out in our latest book, Fake Money Real Danger, inflation doesn’t automatically happen when excess money is printed.  Instead, businesses must decide to raise prices for us to have inflation.  [Click here for details] 

Also, for a while, the Fed can keep interest rates low even if inflation is rising.  How?  By printing more money to buy more bonds!  Of course, that will cause inflation to increase even faster. 

In the past, reacting to rising inflation by printing more money would seem insane.  But, with the bubble economy and stock market now so dependent on low interest rates, the Fed can’t raise interest rates without collapsing the stock market.  So, it will be forced to keep them low by printing more money, even if inflation is 5% or 10% or even 15%.