Hyper overvaluation and income disparity: the moral hazard cycle

Today on The Janssen Report: quite a few positive headlines in the mainstream news. Hmm, I wonder why that is…

In this video we go over some of those headlines and juxtapose them to the other reality out there (which I feel is THE reality). It’s not that I like to be pessimistic (on the contrary), but there’s not a whole lot to be optimistic about.

Still, most of the mainstream news talks about recovery in the economy. Just have a look at some of today’s headlines in The Wall Street Journal:

On a different note, we did see this headline on CNBC last Tuesday: “Black Swan Risk Rises to Highest Level Ever”. The article discusses how investors fear a catastrophic event in the markets more than ever before (see the sources list below).

The main message here is: we are in an unprecedented era of monetary stimulus that has not led us to any true recovery other than the propping up of markets with only very small indirect effects on the real economy. The current era is simply shown in the “Moral Hazard Cycle”: how we have come to a severe economic overvaluation and a humongous income disparity.

There’s only one way to go from here: down. Unfortunately.

Watch this episode (#112) of The Janssen Report here:

Sources:

Stay critical. Do research. Take action.

Cheers,

Marco Janssen

The Janssen Report

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