LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

COT Gold, Silver and US Dollar Index Report - July 10, 2020
By: GoldSeek.com

Gold & Silver Seeker Report: This Week in Mining Issue #21 - Financing's Galore, Early Q2 Production Numbers, and Go
By: Chris Marchese, Chief Mining Analyst at GoldSeek.com

The Silver Pressure Cooker
By: Ted Butler

Gold Stocks Blast Higher
By: Adam Hamilton, Zeal Research

Banking on a Bluff: The Biggest Gold Scam in Modern History
By: Marin Katusa

Epochalypse Now: How Deep is Your Depression?
By: David Haggith

Stock market update: good time to be on the sidelines
By: Gary Savage

Precious Metals Update Video: Gold market a crowded trade?
By: Ira Epstein

Is it Time To Dump Gold Stocks?
By: Brady Willett, FallStreet

How High Can Gold Go in 2020?
By: Sam Laakso, VOIMA GOLD

 
Search

GoldSeek Web

 
Why Wall Street's V-Shaped Recovery Cannot End Well

By: Rick Ackerman, Rick's Picks

 -- Published: Wednesday, 3 June 2020 | Print  | Disqus 

With the nation in deep crisis, stocks continued on their heedless path higher. The seemingly demented rally is demonstrating yet again that bull markets at some point decouple so completely from reality as to mock those who thrive by promoting them. By now, the spun story that investors are looking past the pandemic and focusing on renewed growth is sounding increasingly farfetched. Some economists estimate that it could take more than a decade for economic activity to return to what it was before Covid-19 hit. We don't need economists to prepare us for the worst, though, since we can plainly see the truth of what they are saying all around us. Huge write-offs yet to come will dwarf the relatively paltry trillions pushed, in the name of stimulus, into economic dead zones.  What the money has stimulated, mainly, is the markets, but with some big holes. For example, the collapse of just one category of financial derivatives -- ETNs, or exchange trade notes -- threatens investors with losses of as much as $7 trillion. It is never coming back.

$$ Trillions Are Trapped
But there will be vastly larger losses coming in real estate -- in New York City, among a dozen urban centers, where hundreds of thousands of workers will not be returning to their office-tower jobs. The ripple effect from this will devastate businesses on the surrounding streets, turning Gotham itself into a gangrenous appendage of workers who needn't ever leave their homes or travel to distant centers. Out-of-town business meetings will be moved online, causing huge swaths of the nation's transportation infrastructure to wither. Planes, trains, buses, subways, taxi fleets, cruise ships and Uber cars will trap tens of trillions of dollars' worth of investment capital as the cost of storing and maintaining idled resources continues to mount.  Hotel rooms will grow dusty. Nearly every movie theater in America will be torn down with no obvious tenants to take their place.  The death of shopping malls will add massively to the deflationary hit that sunk capital is about to take.

Do investors who have been bidding stocks back up to their pre-pandemic levels know what they are doing? Obviously not. There is no way the current, v-shaped mania can end well.

Rick Ackerman, Rick's Picks

www.RickAckerman.com


| Digg This Article
 -- Published: Wednesday, 3 June 2020 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2019



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


Map

The views contained here may not represent the views of GoldSeek.com, Gold Seek LLC, its affiliates or advertisers. GoldSeek.com, Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, Gold Seek LLC, is strictly prohibited. In no event shall GoldSeek.com, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.