In this week's Off The Cuff podcast, Chris and Wolf Richter discuss:
- The Pricing Of Risk Is Kaput
- Today's assets are priced at truly insane levels
- As A Result, Safe Yields Are Non-Existent
- Which is killing savers
- The Masses Are Being Betrayed
- Sacrificed for the benefit of a rarified few
- The Housing Bubble 2.0 Appears Set To Pop
- More data is showing a topping out
[My apologies for this delayed posting of Off The Cuff, recorded last week. The California fires prevented me from publishing this sooner. — Adam]
Wolf returns this week to discuss the toxic repercussions of today's gross mis-pricing of risk. It leads to increasingly dangerous mal-investment, elevating the heights from which prices will fall during a correction. The worst part about this is that this current Mother Of All Bubbles is a deliberate act of policy by the central planners, who are sacrificing the future of the many to benefit the today of an elite few:
We’ve already seen this happening in the United States with savers. We’ve had nine trillion dollars in savings in US banks over the years and much of it owned by retirees that expected to live off of this cash flow from interest payments. As every retiree knows that has put up a CD ladder and made other smart investments, with prudent investments with savings product, these cash flows have approached zero now.
by davefairtex