Excessive COVID stimulus has led to a giant game of whack-a-mole.

Except these moles have real-world consequences.

All the economic chaos that has happened and continues to happen can be traced back to the triggering event of COVID stimulus.

$5T poured into the money supply that started the whack-a-mole game.

Oh, economic activity is way down?

We better whack that mole with some stimulus.

Now there’s inflation?

Increased interest rates should help whack that mole.

- Banks purchasing excessive securities with their influx of deposits
- New FED credit facility rolled out after the Silicon Valley bank failure
- Mortgage issues with First Republic's loans to high-net-worth individuals

All just moles popping up and attempts to whack them.

But the biggest issue with this whack-a-mole game is that no one knows when it will end—or IF it will truly end.

$5T is A LOT of inflation to deal with.
It’s going to take time to get it under control.

Until then,
The whack-a-mole game goes on.

--
Digging deep on banks is what I do.

🔔 Follow Brian on Linkedin: Brian Pillmore

#banking 

#stimulus 

#whackamole