Level Of Peril In The Financial System

On this site numerous highly problematical issues concerning the U.S. economy and financial system have been discussed.

Of key importance is the resulting level of risk and future implications.

As discussed in the September 29, 2017 post (“Problematical Aspects Of Today’s Financial System“) the almost universal opinion is that the financial system is strong, in (large) part due to various reforms enacted since the Financial Crisis.

However, there are many reasons to believe that this widely-held assessment is incorrect.  At this time, due to many problematical areas, from an “all things considered” basis I would assess the overall level of embedded peril to far exceed that previously experienced in the United States, including the level in existence prior to and during the Great Depression.

While no one likes to contemplate a future rife with economic adversity, the resolution of the problematical issues in the economy and financial system will lead to what I have previously referred to as a “Super Depression,” i.e. a severe economic depression characterized by difficult-to-solve problems.


The Special Note summarizes my overall thoughts about our economic situation

SPX at 2837.54 as this post is written