The Too Big to Fail Investment Universe


Wall Street is still too big to fail, the global debt bubble is still blowing, and financial assets are now 200% of global GDP. What can possibly go wrong? Max and Stacey get into the options for central banks and ‘plunge protection teams’ when it comes to financial assets and keeping the economy afloat. The two also address calls by the Trump Administration to cut interest rates. A surprising turn of events, given how well the economy has been doing.

Global Equity and Debt Securities Outstanding Rising

Global Equity and Debt Securities Outstanding have climbed from just over $20 trillion in 1990 to $174.8 trillion in 2018. In a never-ending fight against deflation, central banks cannot risk another 2008. With the threat of recession and slowing growth looming, Max Keiser asks the audience a pop quiz:

“You want to stimulate the economy? Do you A.) Increase wages. Or, B.) you increase the price of fine art being sold at Sotheby’s. That is the question.

The Federal Reserve bank and all central banks around the world, choose B.) they want to stimulate the economy by jacking up the price of fine art and other collectibles and other assets that are held by an extraordinarily small portion of the world’s population, that haven’t worked in generations.”

Max and Stacy continue to discuss the recent Bank of America report, ‘Hitchhiker’s Guide to the Investment Universe.’ The report provides dozens of charts and data points looking at where the investment universe stands ten years after the financial catastrophe.

In the second half, Max interviews Craig Hemke of TFMetalsReport.com about the White House demanding a 50 basis points rate cut despite an allegedly booming economy where manufacturing and construction numbers look positive, and stock markets are still near an all-time high. The too big to fail financial system is alive and well, despite what many would have one believe.