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The Disconnect Between Economy and Markets: Investing as a Casino
Energy and commodities fall during recessions, while CPI remains stagnant. Central banks are worried about the stagnant CPI and are planning to take action to crush the economy and control inflation. The FDIC reports that America's largest banks have significant unrealized losses, with Bank of America being the worst affected. Banks have the privilege of valuing their assets at imaginary prices, which conceals their insolvency. The recent bank crisis and Silicon Valley Bank's downfall exposed the truth about the banks' insolvency. Yellen, Biden, and Powell try to reassure Americans about the safety of banks, despite the hidden losses. The banking system in the US is estimated to be close to insolvency. The future remains uncertain as banks only disclose their books every quarter.