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Stock Market
“The rates we’ve had in recent years, including right now, are the lowest in history. The book that I co-authored on the history of interest rates traces back to the code of Hammurabi, Babylonian civilization, Greek and Roman civilization, the Middle Ages, the Renaissance, and early modern history right up to the present. And I can assure our listeners that the rates that they’re experiencing right now are the lowest in human history.”
So says Richard Sylla, Professor Emeritus of Economics and the Former Henry Kaufman Professor of the History of Financial Institutions and Markets at New York University’s Stern School of Business. He is also co-author of the book A History Of Interest Rates.
We invited Professor Sylla onto the podcast after hearing his work favorably referenced by the panel convened at the recent hearing held by the US Congress titled: “The Federal Reserve’s Impact on Main Street, Retirees and Savings.”
Based on his deep study across the scope of millennia of human history, Sylla warns we are at a dangerous moment in time.
Richard Sylla: This Is An Inherently Dangerous Moment In History
by Adam Taggart“The rates we’ve had in recent years, including right now, are the lowest in history. The book that I co-authored on the history of interest rates traces back to the code of Hammurabi, Babylonian civilization, Greek and Roman civilization, the Middle Ages, the Renaissance, and early modern history right up to the present. And I can assure our listeners that the rates that they’re experiencing right now are the lowest in human history.”
So says Richard Sylla, Professor Emeritus of Economics and the Former Henry Kaufman Professor of the History of Financial Institutions and Markets at New York University’s Stern School of Business. He is also co-author of the book A History Of Interest Rates.
We invited Professor Sylla onto the podcast after hearing his work favorably referenced by the panel convened at the recent hearing held by the US Congress titled: “The Federal Reserve’s Impact on Main Street, Retirees and Savings.”
Based on his deep study across the scope of millennia of human history, Sylla warns we are at a dangerous moment in time.
It's impossible to predict with certainty how much more insane our financial markets will get before an inevitable correction, but my personal bet is “a lot!”
For my reasons why, take a few minutes to watch the chapter on bubbles below from The Crash Course. For those who haven't seen it before, the takeaway is this: bubbles pop only when greed in the market has been exhausted.
It’s Bubble Time!
by Chris MartensonIt's impossible to predict with certainty how much more insane our financial markets will get before an inevitable correction, but my personal bet is “a lot!”
For my reasons why, take a few minutes to watch the chapter on bubbles below from The Crash Course. For those who haven't seen it before, the takeaway is this: bubbles pop only when greed in the market has been exhausted.
In this week's Off The Cuff podcast, Chris and Axel Merk discuss:
- Impact Of A Trump Presidency On The Markets
- What will the most likely trends be?
- Plummeting Bond Prices
- Good or bad?
- The Unbearable Lightness Of Stocks
- Rising prices in the face of rising interest rates
- Gold's Prospects
- Inflation? Higher rates? What will it mean for gold?
Axel and Chris address the increasing sell-off in the bond market, which can also be described as the sudden rising of interest rates. In an over-indebted financial system as ours, rising rates will make it more expensive to service the outstanding debt, placing increasing headwinds on economic growth. Right now, the stock market is ignoring that — instead, it's pricing for perfection. Axel warns that this "oddity" will need to correct soon, one way or the other.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Off The Cuff: Multiplying Market Oddities
PREVIEW by Adam TaggartIn this week's Off The Cuff podcast, Chris and Axel Merk discuss:
- Impact Of A Trump Presidency On The Markets
- What will the most likely trends be?
- Plummeting Bond Prices
- Good or bad?
- The Unbearable Lightness Of Stocks
- Rising prices in the face of rising interest rates
- Gold's Prospects
- Inflation? Higher rates? What will it mean for gold?
Axel and Chris address the increasing sell-off in the bond market, which can also be described as the sudden rising of interest rates. In an over-indebted financial system as ours, rising rates will make it more expensive to service the outstanding debt, placing increasing headwinds on economic growth. Right now, the stock market is ignoring that — instead, it's pricing for perfection. Axel warns that this "oddity" will need to correct soon, one way or the other.
Click to listen to a sample of this Off the Cuff Podcast or Enroll today to access the full audio and other premium content today.
Executive Summary
- Which coming developments we can predict with certainty
- Why the next crisis won't be like 2008
- Why what worked post-2008 won't work this time
- Where stocks and gold are headed
- Where to find safe haven for your investment capital
If you have not yet read The Great Market Tide Has Now Shifted To Risk-Off Assets, available free to all readers, please click here to read it first.
In Part 1, we reviewed the market’s risk-on, risk-off gyrations and laid out the case for long-term declines in confidence, political stability and profits. What does this new era of uncertainty mean for individual investors?
What’s Predictable?
We can start by asking—is there anything we can predict with any certainty?
I think we can very confidently predict that future central bank monetary policies will fail to generate sustainable growth or fix what’s broken in the global financial system.
I think we can predict that uncertainty will only increase with time rather than decrease. This rise of uncertainty will predictably lower the attractiveness of risk-on assets, other than as short-term speculative bets after some central banker issues yet another “whatever it takes” proclamation.
It’s also a pretty good bet that if central banks and states continue expanding credit/money that isn’t matched by a corresponding expansion of goods and services, the purchasing power of those currencies will decline.
We can very confidently predict that the authorities will continue to do more of what has failed spectacularly until they are removed from power or the system breaks down.
We can predict with some confidence that issuing more debt will provide little productive results.
I also think we can hazard a guess that the next financial crisis will be of a different sort than the 2008-09 Global Financial Meltdown.
Just as generals prepare to fight the last war, with predictably dismal results (unless the exact same war is replayed, which rarely seems to happen), central bankers are fully prepared to stave off a crisis like the one in 2008: a financial crisis that emerges from leveraged bets going bad in money-center investment banks.
My basic presumption is…
Investing For Crisis
PREVIEW by charleshughsmithExecutive Summary
- Which coming developments we can predict with certainty
- Why the next crisis won't be like 2008
- Why what worked post-2008 won't work this time
- Where stocks and gold are headed
- Where to find safe haven for your investment capital
If you have not yet read The Great Market Tide Has Now Shifted To Risk-Off Assets, available free to all readers, please click here to read it first.
In Part 1, we reviewed the market’s risk-on, risk-off gyrations and laid out the case for long-term declines in confidence, political stability and profits. What does this new era of uncertainty mean for individual investors?
What’s Predictable?
We can start by asking—is there anything we can predict with any certainty?
I think we can very confidently predict that future central bank monetary policies will fail to generate sustainable growth or fix what’s broken in the global financial system.
I think we can predict that uncertainty will only increase with time rather than decrease. This rise of uncertainty will predictably lower the attractiveness of risk-on assets, other than as short-term speculative bets after some central banker issues yet another “whatever it takes” proclamation.
It’s also a pretty good bet that if central banks and states continue expanding credit/money that isn’t matched by a corresponding expansion of goods and services, the purchasing power of those currencies will decline.
We can very confidently predict that the authorities will continue to do more of what has failed spectacularly until they are removed from power or the system breaks down.
We can predict with some confidence that issuing more debt will provide little productive results.
I also think we can hazard a guess that the next financial crisis will be of a different sort than the 2008-09 Global Financial Meltdown.
Just as generals prepare to fight the last war, with predictably dismal results (unless the exact same war is replayed, which rarely seems to happen), central bankers are fully prepared to stave off a crisis like the one in 2008: a financial crisis that emerges from leveraged bets going bad in money-center investment banks.
My basic presumption is…
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