Economists Views on "Markets, Shortages and Can Kicking" 10-3-2021
Chamath: Everyone Is Wrong! This ENTIRE Market Will Collapse...
Stoic Finance: Oct 2, 2021
China has been a hot topic for financial news over the last few months and there’s no wondering why. It started off with some pretty scary authoritarian moves by the CCP to curb business and more specifically Capitalism.
Jack Ma disappeared for months as control of his two companies worth over a trillion dollars was stolen from him. DiDi, the Uber of the east was essentially sanctioned and had their growth prospects dashed overnight for daring to IPO in the United States as opposed to in China.
The education sector was nationalised with no warning overnight, causing Gaotu and its CEO, Larry Chen to lose 99% of the wealth that they had created over the past 20 years.
And then more recently, Evergrande and the entire Chinese property sectors dangerous levels of debt and vulnerability to a liquidity crisis was exposed as well.
They Pushing Catastrophic Monetary Policies: Prepare Your Self For The Worst!
The Atlantis Report: Oct 1, 2021
They kicked the can down the road by bailing out banks that were “too big to fail” and pushing catastrophic monetary policies. They’re fine as long as you keep the fixes coming.
How many trillions are they going to have to print this time when heavyweights like Deutsche Bank collapse? Who ends up paying for it? You do!
All of them and their big government promises keep taxes high, inflation high and unemployment high. What's good for politics is bad for economics and what's good for economics is bad for politics.
Recall that in the Great Recession, the stimulus of low rates was countered by a tightening of lending standards as lenders feared rising default risk. Ultimately, the collapsing system was bailed out as a consequence. Even the rules regarding insolvency had to be changed since many financial organizations were technically insolvent, too many non-performing loans, bad derivative bets, overleveraging, etc.
This time around, rates will move downward but will have a little stimulative effect since low rates cannot force borrowing if the borrower doesn’t want to borrow.
The public is already overleveraged with mortgage, auto, school, and credit card debt. Thus, the negative wealth effect of housing price declines will be magnified. The trade war is the proverbial “straw that broke the camel’s back.”
This is the setup for a self-reinforcing downward spiral. When chickens come home to roost, we’ll probably get a Zero interest-rate policy. We are almost there now, possibly even Negative Interest Rate Policy, government asset purchases, an even worse exploding deficit, and a move to use infrastructure spending and other “tools” to get things moving again.....
Keiser Report | The Shortages Will Continue Until Morale Improves | E1757
Oct 2, 2021
In this episode of Keiser Report, Max and Stacy look at the latest financial news, including that shortages continue as the money printing does as well.
In the second half, Max continues his conversation with Rick Ackerman of Rick’s Picks about the hyper-hypothecated treasuries moment.