Market Risk Is Near The Highest In History with Jim Grant

Famed market analyst and historian James Grant is no fan of the current policies of the US Federal Reserve.

He recently wrote:

"Distortion in the cost of credit is the not-so-remote cause of the raging fires at which the Federal Reserve continues to train its gushing liquidity hoses. But the firemen are also the arsonists. It was the Fed’s suppression of borrowing costs, and its predictable willingness to cut short Wall Street’s occasional selling squalls, that compromised the U.S. economy’s financial integrity."

At age 74, having lived through a number of economic booms and busts as well as having authored numerous books on the history of financial markets, Jim sees the degree of speculation, overvaluation and malinvestment in today's markets as about as bad as it's ever been.

He lays much of the blame at the feet of the Fed and its global central bank brethren, who collectively through their intervention have suppressed interest rates to their lowest levels in all of recorded history.

This has resulted in all sorts of unnatural distortions and deformations that are hollowing out our economy and social structure.

As Jim recently wrote:

"Needing income, investors will take imprudent risks to get it. And if 2% invites trouble, zero percent almost demands it."

Not only do 0% interest rates act as "molasses" on growth by gumming the system up with zombie institutions and toxic malinvestment, but it imperils the social good.

Savers and investors, increasingly desperate for yield, are forced to accept worse and worse choices in attempt to stay afloat.

Under this regime, the rich benefit disproportionately at the expense of everyone else AND it creates a "hyperinflation in the cost of retirement". This accelerating war on the 99% can not stand for much longer without serious consequences and repercussions.

We are thrilled Jim was gracious enough to come on the program this week. It was a huge honor to finally get to interview him (after years of attempt) and I can tell you firsthand, not only is he prodigiously smart, but he is ridiculously nice. A true class act.

But simply put, he's one of the most respected market analysts and historians on the planet.

So when an expert like him warns that today’s markets are at one of the most dangerous levels of speculation in history, we all better be paying close attention.

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There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?

Let us help you prepare your portfolio just in case the future brings one or more of the following: inflation, deflation, a bull market, a bear market, a market correction, a stock market crash, a real estate bubble, a real estate crash, an economic boom, a recession, a depression, or another global financial crisis.

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IMPORTANT NOTE: The information and opinions offered in this video by Wealthion or its interview guests are for educational purposes ONLY and should NOT be construed as personal financial advice. We strongly recommend that any potential decisions and actions you may take in your investment portfolio be conducted under the guidance and supervision of a quality professional financial advisor in good standing with the securities industry. When it comes to investing, past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. All investments involve risk and may result in partial or total loss.

[anthonyalpha]

You're off to a very solid start Adam! How about Doug Casey some time?!?

[mattmccracken]

Love this guy - Jim Grant I mean - although I am starting to love Adam too. He is getting experts who are finally telling the truth. Jim Grant is old school, like me. He knows real value and productivity doesn't come from a printing press. To him I say, "We're not worthy. We're not worthy."

[DTTOM]

Great interviews but there’s an “empty room echo” from the host. A mic would help.

[valeriebooker]

It is like listening on the phone to some on speaker. YOur guest sounds good

[mattg]

When was this interview recorded?
Jim Grant is such a pleasure to listen too

[alexvarsany]

5:20 -- zero % interest rate, free stock trading (the best of the times twice over) -- now, what can go wrong? (This time it's different.)

[LurchLures]

Thanks for getting Jim Grant on. Always good to hear his perspective !

[samtabit]

Great channel Adam, would love to hear from Marc Faber and Martin Armstrong

[magicbus]

great guest. But audio is not good quality.

[stevenhart]

How about getting a better mic so that the voices are clear?

[jackjohnson]

There is no organic economy left, it's all financial engineering.

[lonetraveller]

Adam, your mic isn't routed properly. Your audio sucks....love your new channel.

[Livingjazzarchive]

Lololol! Love his "Fed speech"...

[darrenaustralia]

They say pension funds only have enough funds to cover less than 10% of promised pensions !

[Lewis]

James Grant is one of my mentors, I understand those seeking to become rich quickly being ready to assume excessive risk. I cannot understand those who already have achieved some success are willing to risk their hard earned money on dangerous investments. I know that it is not perfect but I have been buying gold as I also fear fiat currency devaluation as well as excess stock market valuation. I was a NYC real estate lawyer most of my life but local governmental policy can only lead to disaster.

[kevinmorris]

the world needs this whole system to fail, go bricks go !

[rpanerio]

Great interview, unfortunately the sound quality was mediocre at best. This is a great channel. Please improve the sound quality. Thanks for all that you do.

[richiegreen]

Great guests! Echoey audio. Buy a lav mike.

[pepleatherlab]

Jim did write a book on Walter Bagehot. It a very interesting read. It's also good to make Interest Rate Observer your regular subscription. The technical and economic 'real' information provided is outstanding. Keeping ones thumb on the pulse of this growing financial situation is prudent.

[nikoneko]

audio not very good...many videos in this channel