Alternative Visions - A Deeper Look at US Stock Market and Other Financial Bubbles - 10.20.17

As a follow up to last week’s show, Dr. Rasmus takes a deeper look at the forces currently driving bubbles in US stocks (i.e. passive investing, indexing, ETFs, expectations of Fed rates and tax cuts), Bitcoin and other cryptocurrencies, China ‘WMP’ products and corporate junk bonds (aka entrusted loans), Emerging Market dollarized bonds, and Spain and Italy government bonds driven by Catalonia independence and Italy bank debt problems—a short list!  Rasmus explains the parallels between the US 1987 stock market crash and this week’s 30 anniversary thereof, rooted in Fed easy money and speculation in US junk bonds. The super bubble in progress in Bitcoin and cryptos’ rooted in financing of startups and blockchain technology. The big picture of how the capitalist state is increasingly subsidizing investors and corporate profits, primarily by means of Fed free money policies—now shifting to US tax cut policy in the Trump tax giveaways as another major source of State subsidization of money capital. (Next Week: Trump’s next Fed chair and a deeper look at Deutschebank’s important in depth study, ‘The Next Financial Crisis’.)