The Fed was probably good for at least a buck in corn, maybe two, and probably double that in beans. As far as taking the eye off the ball, everybody was just "hyperinflation!!!!, and TO THE MOON!"
The Fed's teensy tinesey suggestion of tightening- maybe 2 or 3 rate hikes beginning late next year- knocked some more of the speculative froth out of this everything bubble.
BTW- this is mostly about the shift in weather forecasts and weather will tell most of the final tale. In this case, the Fed was just sorta cutting off the shrub that Wile E was hanging onto halfway down the cliff.
The problem with blowing bubbles can be highlighted by the bubble in the stock market that Jerry blew for the POTUS beginning in late '18. It ran until March '20 when it popped and blew froth all over the planet in the course of less than a week. The bigger the bubble, the more damage from the kersplat.
Which resulted in the very biggest ever Everything Bubble being blown immediately.
Just some history, if anyone is actually interested in trying to take it all into account.
We remain in an historic Everything Bubble, and deflating it somewhat and gently will be a challenge. It is big enough that it could blow our fractious and confused nation to smithereens if it lets go all at once- with a bit of help from our Chinese and Russian friends who will be abetting the chaos as much as possible.
Whatever a pig empire or the patrimonial family estate is worth under present conditions I imagine it would be considerably reduced under the latter scenario.
Just something to think about before you run into the coffee shop hollerin "it cain't get any worse so do something!!"
Yeah, it can.
