Financial Armageddon: Rising Inflation and Bubble-like assets lead to deflationary depression. (01-08 to 01-16)
We have a lot to cover in this weeks newsletter.
JPMorgan Chase hit with lawsuit for facilitating Jeffrey Epstein's crime network, reminiscent of Madoff Ponzi scheme scandal.
Unicorns vs. Camels: Examining the hype and reality of start-up success in the tech industry.
Wall Street's Looming LBO Bomb: High-risk debt and rising interest rates threaten defaults and government bailout.
Ownership Illusions: Housing policy and competition in the property system.
The Eurozone's Unique Inflation Crisis: Supply-side factors and monetary policy challenges
Let's Dive In!
Website: Zen Second Life
Title: Financial Armageddon
Here are the top takeaways:
Inflation is rising to levels not seen in decades, while asset prices are bubble-like and debt is at record levels.
Central banks are tightening monetary policy, which is only exacerbating the situation.
Crypto currencies are thousands of digital Ponzi schemes with trillions of dollars in market cap and ZERO net worth. And they are fully legal and accepted without question even in 401k retirement accounts. Because they are considered safe havens from inflation.
So far, this story has played out exactly as predicted, with asset inflation causing economic inflation to explode to the worst levels in 40 years. Central banks have been tightening, but this has only made the situation worse.
Now, all of the asset markets are imploding while liabilities remain at all time high in a deflationary depression.
The pundits of the day are telling the masses to expect a soft landing because the Fed has magical powers to bailout everyone from disastrous financial decisions caused by cheap money, using more cheap money.
The Fed is caught in a conundrum where they cannot ease until financial conditions tighten, but investors won't capitulate because they've been conditioned by the Fed to expect a bailout.
This disconnect is causing a lot of societal rage. The financial situation in the world is deteriorating rapidly and it is all culminating into what can be described as the biggest clusterfuck in modern history.
The main reason for this is because asset inflation has gotten out of control and there is a disconnect between what is happening in the real world and what investors have been led to believe by the Federal Reserve.
In particular, retail investors have been told that they will lose money to inflation in perpetuity, which has led to a hoarding mentality that is only exacerbating the situation.
Meanwhile, central banks are tightening rather than easing, which is only making things worse.
All of this is leading to an implosion of asset markets, with even China's economy decimated. The Fed's magical powers to bailout everyone from disastrous financial decisions caused by cheap money are proving to be useless.
In the end, it is all leading to a deflationary depression.
Website: Wall Street On Parade
Title: JPMorgan Chase Hit with Lawsuit for Facilitating Jeffrey Epsteins Crime Network; Similar Charges Were Brought Against It for Facilitating Madoffs Ponzi Scheme
Here are the top takeaways:
Last week, it was revealed that the Attorney General of the U.S. Virgin Islands, Denise George, was fired after she filed a lawsuit against JPMorgan Chase for allegedly facilitating the sex trafficking of children by Jeffrey Epstein.
This news has drawn comparisons to the 2014 case where JPMorgan Chase was charged with facilitating Bernie Madoff's massive Ponzi scheme.
According to the lawsuit filed by Attorney General George, JPMorgan Chase knew about Epstein's illegal activities and failed to comply with federal banking regulations.
The bank is also accused of knowingly sustaining and concealing Epstein's human trafficking network.
Attorney General George has settled a previous lawsuit against the estate of Jeffrey Epstein for $105 million.
This latest development raises questions about Staley's ties to Epstein at JPMorgan Chase and whether or not he should continue to serve as CEO of Barclays.
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