A Conspiracy Theory but now the guy who runs the Largest Hedge Fund in the world ray deleo has joined this side of the equation the way we look and analyze the markets he agrees with us and here again hes the most successful current Hedge Fund Manager in the world bridgewaters dalyell says Capital Markets are no longer free Central Bank Balance sheets will explode dahlias said that investors should favor stocks and gold over bonds and cash because the latter offer a negative rates of return and Central Banks will print more money see hes watched the show he knows about plucky he knows about what plucky does the Balance Sheet are out so it raises saying there you know what weve been saying right so in a market there is that the price in a market is supposed to represent something as opposed to represent supply and demand thats kind of what prices are all about and thats what the wealth of nations the book written by. Adam smith adam smith is all about you know. Oh its the enlightened th
Max kaiser this is the kaiser report you know weve been saying for a long time that the markets dont really exist that theyve been replaced with. Its hard to i mean i want to go into what theyve been replaced with the lets just say that they dont exist anymore how about that and then well go throw to stacy and then shes going to have some color on the stacy womacks here on price report for the past 10 years we have been saying the markets are rigged they are not fair they are creating a cantillon effect they are creating moral hazard they are bailing out the very top you know 0. 01 percent of the population from their bad bets in their bad you know investments and indeed many you know some would say oh thats a Conspiracy Theory but now the guy who runs the Largest Hedge Fund in the world ray deleo has joined this side of the equation the way we look and analyze the markets he agrees with us and here again hes the most successful current Hedge Fund Manager in the world bridgewaters dall
Quickly. And staying strong. The worlds top iron ore prices are among the highest out of china. Shery lets get you started with another check of how markets are trading at the moment. Futures underu. S. Pressure as stocks fell to the lowest level in two weeks. We are seeing it down 0. 7 . Than 2 ,00 lost more same for the dow and the nasdaq. The dow losing more than 700 points. We had the sharp increase in virus cases, adding to economic anxiety. So risk off positioning was very strong last week. We did get positive data over the weekend, signs that the chinese economy is continuing to recover and profits rebounding in may for the First Time Since november. Take a look at what oil is doing because it continues to fall. Actually, we saw a second week of declines, the second weekly decline since april. We continue to have these lower prices after a cautious rebound, now headed towards 37 a barrel for wti. We also had chesapeake filing for bankruptcy in the u. S. , one of the biggest vict
A market is supposed to represent something i supposed to represent supply and demand thats kind of what prices are all about and thats what the wealth of nations the book written by. Adam smith adam smith is all d about you know its the enlightened thinking apply to economics that the invisible hand that is better than having the king tell you what the prices are that you the people can figure out their own prices just let all the people interact and the net result will be a better price for everything for everyone right yes a. Boat that doesnt exist anymore you have the kings now the princes the wall street titans and the private equity guys who dictate prices and to make it look you know for cosmetic purposes once they dictate a price lets say more a buffet says i need the price apple to be at 350. 00 a share then algorithmically you can fill in the trades phantom trades and wash trades to go. The 350. 00 to make it look like theres a market there is no more market they dont need to
To discuss this and more im joined by my guest Richard Wolffe in new york he is a Professor Emeritus of economics at the university of massachusetts amherst as well as the author of the recent books understanding socialism and understanding marxism and in chicago or which he has a chief marketing strategist bubba trading all right gentleman rules in effect that means you can jump in time while i was appreciate todd let me go to you as you just heard in my introduction you know that we have an ongoing deep recession i think as of this morning the i. M. F. Came out with their global projections and a contraction of about 5 percent globally the u. S. Doesnt do much better the industrialized world is more or less in the same position but at the same time as i said you know we how the wealthiest among us. Keeping in enormous revenues and profits here and the unemployment depending on who you want to look at it from 13 maybe 17 percent and thats not going to go away any time soon so whats re