The Worse Banks Get, the More This Easy Trade Pays You
July 29, 2016 at 05:00 AM EDT
The global economy is about to be dealt one "double whammy" of a knockout blow. It's because of two different emerging trends that are fast approaching collision: financial repression and the uncontrolled expansion of the financial sector. Financial repression has vastly contributed to the pain the middle class is feeling now. Historically low, even negative, interest rates have eaten into returns and helped decimate pension funds and punish everyone from savers to bondholders. At the same time, massive banks have been allowed to grow in size and power, totally unchecked. And they've used this growth period to inject huge, totally unsustainable amounts of leverage into the system via trillions of dollars in derivatives contracts and bad loans. Either of these would be bad enough, but I want to show you how these trends are converging to unleash a firestorm of capital destruction on the unwitting. That's something we're just beginning to see in Europe right now, but it sure won't stop "over there." The way to avoid it? Don't be unwitting. Take a look at this easy-to-trade profit play I'm recommending right now. The worse banks get, the more it pays... Tags: market crash To get full access to all Money Morning content, click here About Money Morning: Money Morning gives you access to a team of ten market experts with more than 250 years of combined investing experience – for free . Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors. Disclaimer: © 2016 Money Morning and Money Map Press. All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning. 16 W. Madison St. Baltimore, MD, 21201. The post The Worse Banks Get, the More This Easy Trade Pays You appeared first on Money Morning - We Make Investing Profitable .