Wednesday, August 10, 2016

Now The Markets Themselves 
Are Too Big To Fail
Financial Repression Of The Financial Markets
"The First Rebuttal website has coined a term that gets to the heart of an increasingly dysfunctional system: The too-big-to-fail stock market. The general thesis is that most major countries are over-leveraged to that point of maybe being unable to survive a garden variety equities bear market – and are doing whatever it takes to keep that from happen .. Markets no longer serve their intended purpose of efficiently allocating capital. Since capitalist wealth creation depends on functioning markets, today’s world can no longer be called 'free' or 'market-based' in any meaningful sense .. Under the surface the system is rotting away. Good jobs are becoming scarce and capital is being directed towards things that will never generate enough cash flow to pay off the related debt. Rising financial asset prices are increasingly disconnected from the falling value of underlying assets .. It’s no longer possible, in short, for most people to tell what’s real and what’s not. And since markets’ main function is to reveal underlying truths, it’s not a surprise that governments have decided to hijack the message."
- John Rubino
link here to the commentary

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