I wonder if that is feasable:
Banks creating more money, but in FIAT money, not in blockchain crypto no one can really buy anything yet for. There are two ways of banks giving out a credit. The first rather old school and quite outdated based on money they have in their accounts from their clients. That is basically very old school banking the way the Templers became the biggest lender to a french King that also overthrew the today legendary mystic order.
Or, they ask the central bank for a credit and pass that money on to the lender, in both cases having an asset securing the credit in partial ownership such as the family home in suburbia or the real estate investment creating a constant revenue and since lately a stock portfolio or possibly even crypto wallet.
The stock values these days are overvalued based on classic relations such as profit to stock value, if the same relation values as in the 1970ies or 1980ies are used in which all big rich stock moguls founded their todays wealth. Buffet or Sorros, they all started decades ago, about at the same time the overall amount of money started rising exorbitantly having more cash from the central banks all together to trade and buy everything from daily groceries to stocks to puts and calls and mega yachts.
Inflation is calculated for small average Joe based on a set of rather common goods. Small below average income me pays way more in percentage of income for a tomato than my rich counterpart from the other side of town, who is way more impacted by the prices of luxurious goods that are independent from inflation rising prices, based on hype for e.g fashion watches and fashion clothing brands or long term quality by old school luxurious brands creating collecter items once to twice a year from Tiffany to Hermes and Rolex.
The central bank only checks the bank they lend to, not if the bank lends based on good or bad securities to their clients.
For major banks it does make little sense to finance small family homes in the outskirts that the lender pays off himself since the sub-prime crises also for all those that slept through their college classes having a hangover. No one can be sure to pay off a loan for the next 30 years based on the current job and the banker needs to understand that he might have to sell the house for the lender especially off the major economic hot spots making a good finance strategy including savings or insurance for unemployment time a requirement that most major banks won't have their stuff stuck in considering bigger fish out there.
In Germany the income border to get into real estate as an investment using the tenants to pay of the credit is somewhere on smaller manager level about 25% over average income at almost 3.000€ brut per month, giving the capable of managers leverage to become one digest millionaires with a credit lines blessing and a useful hobby to secure the marriage.
Those already millionaires apparently base their luxurious spending on their stock portfolio instead of reinvesting the credit into something that actually creates a return.
Even so the 1920ies stock market crash was based on credit based stock speculation and stocks per nature being volatile, they turned again into a respectable security. In the same way that the small banker from tiny bank small town checks where and what house family daddy finances by up to 80% credit, the big corporate main banker will check the stock or crypto portfolio and where the credit is supposed to go, I hope.
The difference is the zeros. The small banker will create a maximum of 300.000€ usually with the central bank while the big banker well could create several two digest millions and some very private meeting room occupying bankers straight up to a few billions from the same source.
"Orange juice or water? With sparkles or without? How much do you like to take today, Mr. Musk? Only 2 Billion? By your portfolio held in your broker account with us it is of course secured, but I am dying to understand the underlying investment. Bank policy, you know. That's why we have Mike from the investment branch here with us. We follow your success closely"
The current height of stock indexies is connected to the rising amount of money printed by the central banks boosting, along with cheap money, the economy for all in several turns since about the 1960ies when the gold standard was dumpted, faster and faster into today's addiction of the entire system to cash floating around like never before.
Not all of the rich can sell some stocks from the portfolio or of their own enterprise like Elon to invest into more promising opportunities, but most appear to get a credit on them as easy as family daddy for that house.
