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Alternative Visions – Stock Markets in Freefall. Recession & Financial Crisis Coming?

Dr. Rasmus comments on the continuing fall in financial markets and how that may prove a contagion channel to the real economy and recession. Why the Fed’s .5% rate drop earlier this week had no effect at all on the stock market implosion, continuing to this day. Worst since 2008. Why other financial asset markets (oil, commodities, currencies, etc.) are also contracting sharply. How financial asset deflation can translate into US junk bond, BBB bonds, leveraged loans, Repos, and derivatives financial problems. How the latter propagate then to the real economy via a credit crunch. Rasmus explains why monetary policy solutions are dead in the water. What’s coming possibly this weekend and next in fiscal (tax, spending) responses by US and other government. Rasmus reviews the 4 channels of coronavirus contagion to the real and financial economy (supply chains, demand, asset deflation, currency devaluations). The show concludes with an analysis of this week’s ‘Super Tuesday’ and the now more clearer evidence of Democrat Party leaders and financiers’ strategy to stopo Sanders. How this may lead to an irrevocable split in the Democratic Party and defeat of Biden should he become the nominee (now likely). For analysis of the primaries, read Dr. Rasmus’ just published print piece, “Super Tuesday and the Irrevocable Split in the Democratic Party’ on his blog, jackrasmus.com).

 

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