Loading ...Of course someone from Schwab is going to tell you the economy’s more resilient and few shocks will turn into crises going forward…now more than ever they need muppets to pour in keep the bubble afloat a bit longer. It’s all a sugar high supported by QE and buybacks. There’s no substance and nothing’s any better off than before.
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“But it’s clear that on measurable benchmarks banks are much better prepared.”
The shadow banking system has become massive and just like the last time around, it’s the “unmeasurable” benchmarks that are going to eventually crater the system. Massive amounts of debt and “unmeasurable” leverage and leverage on leverage out there.
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Collusion and protectionism. Corporations, banks, insurance companies, they all run together. Bailouts are just socialism for the rich. Like some say, maybe a false flag event, or some big group pulls the plug.
It’s a consumer based economy, as long as we can keep creating dollars and debt we can bump along like this for a long, long time.
I think ZIRP policies will keep the music playing, just keep rolling the debt over, creatively servicing it. Your winning, your shorting the dollar, the more you owe, the less it’s worth in future dollars. And, interest rates will go below zero at some point in the future, they already are in some countries. Mortgage rates here in the U.S. will be financed down to numbers like 2% what we see in countries like Germany now.
I also tend to look around and see what’s in regarding creative financial moves. Leverage seems to be in, as well as consolidation.
I also tend to look at what is growing but doesn’t have the money to pay for it, one example is health care, can the people afford this, not really.
Those who keep themselves healthy, and work the system will come out ahead.
It’s just as likely a banking event will occur again, in the event that defaults increase, banks will pull back, and they will all pull back together in concerto in order to avoid becoming bag holders. It’s a world economy now, so who knows. The larger the consumer based economy base gets the more protection over all economic conditions have. And, it’s a growing movement.
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Neoliberalism was a one way trip and we’ve reached the final destination, a debt saturated world.
Its success has come from bringing future prosperity into today with debt.
At 25.30 mins we can see the super imposed the debt-to-GDP ratios.
The end is nigh.
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There was a fatal flaw in the economics of globalisation.
The 1920s roared with debt based consumption and speculation until it all tipped over into the debt deflation of the Great Depression.
No one realised the problems that were building up in the economy as they used an economics that doesn’t look at private debt, neoclassical economics.
It is still the same.