If you haven’t been living under a rock you know that Michael Burry was preaching about hyperinflation leading to market failure before he decided to leave Twitter. NOW for the past 2 years the general media/investing community has been very harsh towards Warren Buffetts investment style, while he sits on 140 billion of cash. Now, Couple that with Goldman’s Exodus from their inflated tech stocks.
Both these firms remained relatively stagnant after the crash last March. While other banks also sit on more capital than anytime before.
Why? Why do these firms have so much cash?
Especially when the market helps protect that cash from inflation based devaluation.
The answer is right in front of us and it’s that the system is in trouble. You don’t need to do a deep dive or run the numbers, because it’s the only thing that would cause these institutions to act in the way they are acting.
Edit: Sorry guys I was just doing my DD for the week and this just popped out. I will do some an in-depth study over the next couple days and write the full conclusions with data to back up the thesis.
Submitted March 27, 2021 at 08:07PM by TooMuchRope https://ift.tt/3ct8gVJ
