Getting back to Normal
The markets seem to be taking over the idea that Omicron is the last of Covid, that it will burn out by infecting all the no-vaxers. Those no-vaxers remaining will limp forward and stop vectoring the virus around the environment. Maybe even not be well enough to make to the polls in 2022.
However, Getting back to normal may be rather traumatic for an economy addicted to funny money. Yes we have had a Covid pandemic but the Fed and the government pulled out the stops to a degree that there has been more money flowing around than if there had been no pandemic.
Debt was the Economy’s Savior..
Debt was used to save the overleveraged economy that operated with no plan or backstops.
And BBB, if finally passed, should not add to that debt as it will be self financed by the legislated tax changes.