Source: https://www.linkedin.com/feed/update/urn%3Ali%3Ashare%3A6994762760387530752
Bloomberg LP Calling a Super Bubble: Low rates have created, I think, the biggest evil in our society, and that is inequality.: Front Row With #JeremyGrantham, Co-Cofounder-Chairman GMO https://lnkd.in/gYypS3x4:
#Digital #Distortions of Low #Interest #Rates: #Carvana’s Rose-Tinted Windshield Is Dangerous: The online used-#car seller is facing some hazardous market conditions: https://lnkd.in/g4UZXprP :
Between slowing used-car demand and rising interest rates, online used-car seller Carvana is navigating some perilous conditions. Can it emerge safe and solvent? That is the question facing most of the #FreeMoney Party that celebrated hard #CashIsTrash while #Trashing the #Cash that represents the subsistence and survival basis for worldwide #Workers, #Consumers, #Pensioners, #Retirees.
How #CashIsTrash Destroys #Labor, #Workers, #Consumers, #Pensioners, #Retirees:
The #FreeMoney distortions enabled by #ZIRP and #NIRP [Zero and Negative Real Interest Rates] have effectively resulted in transfer of more than $50 Trillion wealth from the 90%-99% of the worldwide workers to the Top 0.1% to 1% world’s richest #billionaires and heralded the era of #trillion-#dollar #market #capitalizations built upon record-breaking and unprecedented #stock #buybacks. Result is the #artificially #inflated largest #bubble not only in the global #equity markets, US equity markets in particular, but also underlying the greatest #Superbubble of all times across all of #financial #asset #classes including #derivatives worth #quadrillions.
#VentureCapital #HedgeFunds #FinancialMarkets #Financial #Assets
Bloomberg LP Calling a Super Bubble: Front Row With #JeremyGranthamm, Chairman, GMO: https://lnkd.in/gYypS3x4:
They [the Fed and their ‘influencers’] act as if low rate is a panacea and comes with no downside. That is clearly nonsense. It’s created, I think the biggest evil in our society, and that is inequality. If you drive up the price of assets systematically and it’s bound to happen if you drive the rates down to negative territory. Who do you make money for. You make money for the people with assets. Who owns the assets. The top 1 percent has 35 percent of all the assets. The top 10 percent have practically all the assets. What is the asset ownership of the bottom half. A rounding error. Practically none. So you mark up the assets and that is your contribution to the society. What you’re doing is pushing down on labor, pushing down on the bottom half with no offset from increasing their assets since they have none. And you’re making the top 1 percent ineffably rich. And the data bears that out. Right down to the last two years when the top 0.1 percent has doubled its wealth during Covid. And the bottom 50 percent, I can assure you has not doubled its wealth.
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