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Yes, but the anger against the Banks must rise to the level that it was during the Great Depression for this to happen. Right now we are in the Giddy Speculative period and there is no impetus to reenact it.
No impetus now, but with the continued creation of asset bubbles and larger consolidated central bank power it will become very necessary down the road- unless people desire implosion instead.
No impetus now, but with the continued creation of asset bubbles and larger consolidated central bank power it will become very necessary down the road- unless people desire implosion instead.
Agreed. That's the way it usually goes. People are normally reactive rather than proactive.
Agreed. It is all over the place. Amazon seeking at a P/E of 800? The Russell 2000 at 150? Apparently auto makers having been filling dealer lots with unwanted card (there is a Fiat Chrysler lawsuit) and giving away loans to anyone who has a driver's license. Will Ally go bust again? It is just been deja vu all over again. But each time the financial industry invented another way to create Bubbles and the Fed, which in theory is suppose to supervise the industry, goes completely along with it. As if Yellen didn't know what everyone else knows. Sub-prime and bad loans once again.
" AMZN has been an indirect beneficiary of QE largess. The Fed’s easy money created a bubble in VC funded start ups. That funding peaked this year and is now in decline as the Unicorn bubble is bursting. I expect this bubble to unravel fast as we are in the part of the cycle where the capital markets shut down for companies burning cash."
Demographics are the final nail in our economic coffin, as the boomers begin to reach the age of mandatory withdrawal from their retirement accounts, the millennial's are in no position to purchase what the boomers are selling. The milinnial's are strapped with massive student loans which they floated with the hope they would find jobs which have not materialized. Instead many find themselves living with parents and struggling and unable to even survive on their own much less purchase the assets of the boomers at greatly inflated prices.
The only rational outcome from all of this is that assets must be and will be revalued, at prices where they will be able to be purchased.
When that happens, a great deal of the boomers wealth will simply disappear.
Must be talking about the housing market. In California, the home ownership rate has been dropping like a rock due to the sky-high prices. I believe it is at or near the lowest rate in the country, at a little over 50%.
Seems like many Millenials and even Gen-Xers are simply waiting to inherit houses from their parents or grandparents rather than buying their own, simply because they cannot afford it or do not want to go into massive debt to do so.
" AMZN has been an indirect beneficiary of QE largess. The Fed’s easy money created a bubble in VC funded start ups. That funding peaked this year and is now in decline as the Unicorn bubble is bursting. I expect this bubble to unravel fast as we are in the part of the cycle where the capital markets shut down for companies burning cash."
I agree with all of your points. Very succinctly and well stated. There only other major event that I would include would be the repeal of Glass-Steagall (also under Clinton) which took the handcuffs of the Banks that existed from the Great Depression and was designed to prevent the Banks from financing the speculative Bubbles in coordination with the Feds.
Yes, in many ways we have regressed to doing many of the same things that caused the great depression to begin with. It would not surprise me if at some point in the future it would not be necessary to implement some of the same fixes, including bringing back Glass-Steagall and even the 90% top income tax rate.
Yes, but the anger against the Banks must rise to the level that it was during the Great Depression for this to happen. Right now we are in the Giddy Speculative period and there is no impetus to reenact it.
The reason why it had to be repealed was that people could accomplish their investment objectives that Glass-Steagall forbade overseas. Banks would have gone under from not being able to meet the competition. Its repeal was inevitable.
The reason why it had to be repealed was that people could accomplish their investment objectives that Glass-Steagall forbade overseas. Banks would have gone under from not being able to meet the competition. Its repeal was inevitable.
That was the reason given to the public. The original reasos Glass-Steagall was enacted still hold. To prevent Banks from speculating with Federally Insured public money and creating an unstable financial system. It just took a short time for the Banks, post-repeal to create exactly the same Bubbles that caused the Great Recession. You may might have noticed the financial system was quite stable, even during the worst crashes, in the years post-Glass until the era of repeal.
Bankers need to be handcuffed. They have proven throughout history that they will speculate and lose public money and cause financial crises if they are not.
That was the reason given to the public. The original reasos Glass-Steagall was enacted still hold. To prevent Banks from speculating with Federally Insured public money and creating an unstable financial system. It just took a short time for the Banks, post-repeal to create exactly the same Bubbles that caused the Great Recession. You may might have noticed the financial system was quite stable, even during the worst crashes, in the years post-Glass until the era of repeal.
Bankers need to be handcuffed. They have proven throughout history that they will speculate and lose public money and cause financial crises if they are not.
You have to be joking about stability. Franklin National Bank collapsed in 1974. Continental Illinois in 1988 or vicinity. The S & L crisis of the late 1980's and early 1990's. And that's from 45 seconds of thought.
You have to be joking about stability. Franklin National Bank collapsed in 1974. Continental Illinois in 1988 or vicinity. The S & L crisis of the late 1980's and early 1990's. And that's from 45 seconds of thought.
Surely you jest about "stability."
Well now you are joking if you compare those comparatively small financial events to what is going on now. The S&L crisis was relatively big for its time and the government quickly cracked down and got things in order. It was a different time. Now Bankers are rewarded with trillions of dollars for their chicanary.
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to what is going on now. The S&L crisis was relatively big for its time and the government quickly cracked down and got things in order. It was a different time. Now Bankers are rewarded with trillions of dollars for their chicanary.
