source Today, we are encountering an unimaginable state. All previous attempts to fix the financial system have been very straightforward: Lower interest rates and print money. The government [would] simply fill in gaps wherever they could and eventually the recovery would be back to normal. Since the Financial Crisis, clearly that didn’t happen. In fact […]
source The stock market moves fast. With countless interventions taking place over the years, any period of slow growth or falling levels has always been met with more stimulus. This can come from the Fed and their many programs or from the government’s big taxpayer funded bottomless pockets. Either way, it creates ridiculous distortions that […]
source Perhaps the biggest bubble on earth is the student debt bubble. It’s massive on any scale. There’s no possible way this will end well. Continuously increasing education costs, maximal debt, and the compounding effect of not having a good salary or any job at all on top of debt repayments. This is a system […]
source The intervention by the Federal Reserve and other central banks has been at a historic level. They told us that their actions were temporary. In 2008 and onward, congress grilled the Fed, and made it seem as though their actions would be challenged. Today, after never normalizing anything, politicians, bankers, analysts, and the retail […]
source Money printing is never a solution. Even the Fed knows this. However, it does a great job of devaluing the currency. You see, you can print money, you can expand the balance sheet, you can buy assets, but you cannot force people and businesses to use the money. The only way to do this […]
source Food is an essential component of our lives and yet one that too many people take advantage of. We can buy it cheap just about anywhere. If one store is too expensive, there are many stores nearby willing to undercut prices. But what happens when the supply chain breaks? What if there is suddenly […]
This is a continuation of yesterdays video. The CMBS is a huge issue and it’s largely ignored. What do you think is the weakest link in the financial system?
Massive economic disparity today as certain businesses flourish and others fail. Certain businesses that were producing billions in revenue every year are now completely bankrupt. We are witnessing a scale of unlimited potential for failure. This presents future issues as well because the impact is truly unknown. The response from government? Stimulus checks and more Fed money printing. Excellent, that should work out nicely.
We haven’t seen this much debt amassed in such a short period of time. With governments relying so heavily on low interest rates to be able to pay back their overlord central bankers, where does this leave the future of all currencies versus their relationship to real goods? Not a very pretty picture it would seem.
The global economy relies on spending. More and more spending. If people aren’t buying iPhones, they don’t need as many parts. If they don’t need the parts, they don’t need the raw materials. Everything is connected. It goes for any industry. One industry that is joined at the hip is the financial and housing industries. We learned in 2008 what it was all about but unfortunately haven’t learned our lessons whatsoever.
