Institutional Loss of Faith
___________________________________
Loss of faith in American – and global – institutions is accelerating. Whether the institutions are public or private, religious or secular, tangible or financial, the credibility gap is becoming a giant fissure.
People long for authenticity, the real deal, but are served up a diet of fake university outrage, indictments, and impeachments on counterfeit charges, fake science, and fake news.
Lately, we are being hammered with fake women. There was a day when it was more straightforward. Remember the advertising jingle for coconut/chocolate candy bars? “Almond Joy got nuts – Mounds don’t?” Once upon a time it only upset Miss Prissy, the fourth-grade English teacher. Singing that old ditty in the wrong place today will get a guy arrested.
Underlying all this is the realization that about half of the profit made in the United States from all sources is from finance. This means creating and servicing debt, and those that pull the biggest financial levers dominate the economy and American policy.
Marginal borrowers are being wiped out as interest rate increases force the repricing of underlying assets, yet the financial industry has no risk. They can always count on a bailout.
A rage is brewing, and each new insult and fake promise is like more gasoline on the fire. The government wants us to focus on fake eyelashes on fake women, but actual bankruptcies and business failures command attention.
These types of rages have happened before. In 1776, 1861, 1933, and now today. They bring change through violence as the ballot box is compromised.
TTPers will note the consistency of warnings of the growing rage and distrust of intuitions. With every car repossessed, every home foreclosed upon, and every vacation canceled, middle America is waking up to the calamity of being overleveraged. They thought they were following the path toward prosperity.
Read more...