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Eps 579 - Geoffrey Gundlach on Markets, Liquidation and Private Equity
Description
From time-to-time, I try to explain the amount risk the average person has in the stock market through their 401K, IRA or other equity accounts. I often struggle to get them to grasp just how precarious and fragile our system is. Most people think of our economy as a huge pyramid with a tremendous base making it very solid, and the economy is like that. However, half of every transaction in the economy is money (or fiat currency) which distorts the economy and dramatically increases its fragility. It would be more accurate to imagine an upside down pyramid where massive debts and leverage are producing an ever increasing pressure on a very tiny base. Geoffrey Gundlach is an expert at exploiting this system for value and it says a lot that he is not seeing much value anywhere, in any asset class.
Geoffrey Gundlach Interview on Economy, Debt, Private Equity, and the Structural Issues in our Economy