They Own the US Economy

Three companies now own 20% of the U.S. stock market ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [outsider club logo header] Dec 03, 2024 | By Briton Ryle They Own the US Economy The Great Financial Crisis of 2008-9 was a major turning point. Bear Stearns and Lehman Brothers both failed. But many other companies that should have failed were instead rescued with taxpayer bailouts. Bankruptcy is supposed to clear the brush and burn the dead wood. Instead, the bailouts covered up all the inefficiencies and bad decisions and left us with zombie companies that cannot grow to their potential – companies like Boeing, Intel, Ford… Back in the 1950s and 60s, US GDP growth averaged 4%. In the wake of the GFC, U.S. GDP growth has averaged a little under 2%. The inefficiency is now part of the system. In the 1980s, the value of financial assets (like stocks and bonds and mortgage loans) were roughly the same as tangible assets in the U.S. By the time of the GFC, financial assets were three times the “regular” economy… Today, financial assets are worth 6 times the regular economy. Include shadow banking and private equity lending and it might 10 times bigger… In 1998, the world’s billionaires controlled 2% of global GDP. As of 2022, the world’s billionaires controlled 12%. Three companies – Blackrock, State Street and Vanguard – now own 20% of the U.S. stock market. Financial assets and their owners now control the economy. And what they want in order of importance are: - Stability – at the very least, values need to remain stable - Upside – upside means they make money - No Recessions – all of the world’s central banks and elected officials are doing their part It took the Fed and Congress two years to figure out how to respond to the GFC. The COVID bear market lasted a month. The Fed and Congress money pump started a rip-snorting rally while the economy was still in lockdown! Do you remember when Silicon Valley Bank became the third-largest U.S. bank failure in history in March 2023? Maybe not, because the Fed and Congress know the playbook by now. They snuffed out that crisis over a weekend – and the already rich folks over at JP Morgan got richer with a sweet deal on a distressed bank. The powers that be have spoken. The AI Connection Money goes where it’s treated best. There is one sector that is nimble enough to grow: technology. AI is the tech flavor du jour. This is where the money is going… In 2020, Nvidia was worth $145 billion. Not even 5 years later, it is worth over $3 trillion: [Just LOOK at this chart right here]( Cheers, Briton RyleChief Investment Strategist[Outsider Club]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy [here](. Outsider Club, Copyright © Osprey Financial Research LLC, 5004 Honeygo Center Drive Suite 102-202