'The “financialization” of the American economy has led to increasing income and wealth disparity. As much as it pains me to say it, the “system” really is rigged. Whatever the good intentions of the Federal Reserve in particular and the US government in general have been, it has distorted the economic feedback loops that balance a true market-based economic system.
The fact is we already have “socialism” today. It’s not the socialism we feared in 1974. We have socialized the risks of capitalism, to the benefit of a small portion of the country, while a larger portion struggles.’''Because of the frustrations of so many, both left and right, I think volatile swings between radically different political choices could become
de rigeur for at least the next three election cycles, if not longer. The simple fact is that no political solution can deliver economic nirvana. But until something happens (like The Great Reset) to force unwelcome change, the cycle will continue. And that is a reality we as investors have to face.
..
From what I see, it may be true that most Americans are in “better” financial condition. But I think Ray Dalio is right when he divides the country into a bottom 60% and top 40%. More than half the country is in various degrees of trouble, and they are open to anything they think might help them, including what they think of as socialism.
..
The “financialization” of the American economy has led to increasing income and wealth disparity. As much as it pains me to say it, the “system” really is rigged. Whatever the good intentions of the Federal Reserve in particular and the US government in general have been, it has distorted the economic feedback loops that balance a true market-based economic system.
The fact is we already have “socialism” today. It’s not the socialism we feared in 1974. We have socialized the risks of capitalism, to the benefit of a small portion of the country, while a larger portion struggles.’
- John Mauldin,
Why Americans Want Socialism, February 21, 2020
Context'..Investors didn't even do that in 1929.' - John P. Hussman'..Bubbles remain the overriding risk – and further inflation only intensifies historic Bubble risk..'(Banking Reform - English/Dutch) '..a truly stable financial and monetary system for the twenty-first century..'