Jeremy Grantham: US Approaching “Brazil or Chile” Levels of Wealth Disparity

via global-macro-monitor:

Great and super fascinating interview with investing legend, Jeremy Grantham, one of the best bubble spotters out there.

  • “I arrived in 1964, and America was a fairly equal place with fairly rapid mobility between socioeconomic classes,” Grantham told CNBC’s Wilfred Frost. “Now it’s worse than the U.K.”
  • Grantham also said the wealth inequality in the U.S. is approaching that of countries like Brazil and Chile.

We wrote about the nature of this bubble, a “steel bubble” and how its decline will be different than that of past bubbles — that is a rapid popping — which is Grantham’s main thesis,

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This asset bubble is different.

It is larger, encompasses almost all asset classes, may inflate much further, will  likely last longer than many expect, and will be harder to burst because the global central banks have taken $13-15 trillion in assets out of the markets, creating artificial asset supply shortages,  and repressed interest rates to zero or below.  Leaving few alternatives but to chase risk assets. – Global Macro Monitor, September 2017

This is a MUST VIEW, folks.

Grantham

Click here for the full interview

 

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