The Birth of Anarchic Capitalism
At the outset of the French Revolution, the Duchess of Devonshire rode into Paris with her aristocratic pals for a glamor-filled shopping spree.  Initially flummoxed by all the people on the streets, the party continued until, turning into one of the boulevards, the fury of the mob came fully upon them.  So it often is – many of us living in the “good place” the Fed called the U.S. economy were stunned when the mob turned upon the stock market last week.  Indeed, at the very same time, FRB Chairman Powell said he thought financial stability-risks were back to a comfortable, “moderate” range.  But, Ray Dalio and others who astutely follow the money – not their own models – forecast exactly this type of what I’ll call anarchic capitalism.  To be sure, GameStop isn’t the Bastille – instead, it’s like one of the small insurrections ahead of 1789.  With ultra-low rates and free trading urging on the mob, far bigger bastions may tumble.

M020521.pdf