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September 3, 2020 | Shilling: Expecting Recession Throughout 2021

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

As we covered in our client letter for August on Monday, central banks can pump money into financial intermediaries and buy some securities to increase cash in the system but they cannot force lending nor productive investment through the economy. This is why M2 Money Supply (movement and multiplier effect of capital through the economy) shown on the left since 1958 (courtesy of SoberLook) has continued to collapse.

As a result, asset bubbles and non-productive capital mount like alligator jaws waiting to slam down on prices and participants once more. Gary Shilling’s month-end letter for July (subscription) “Underfunded Entitlements” covers the math of the current financial pandemic in detail. He touched on some of the details, including M2, in his recent BNN interview below.

Gary Shilling, president of A. Gary Shilling and Company joins BNN Bloomberg to discuss his bearish outlook on the market and why he anticipates the recession to continue though out 2021. Here is a direct video link.

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September 3rd, 2020

Posted In: Juggling Dynamite

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