Should we worry?

Wall Street on Parade has some interesting observations on the economy. The authors read a lot. Here are some quotes by supposedly quite knowledgeable analysts from their recent readings:

“People always ask me what is going on in the markets. It is simple. Greatest Speculative Bubble of All Time in All Things. By two orders of magnitude. #FlyingPigs360.”

“All hype/speculation is doing is drawing in retail before the mother of all crashes. #FOMO Parabolas don’t resolve sideways; When crypto falls from trillions, or meme stocks fall from tens of billions, #MainStreet losses will approach the size of countries. History ain’t changed.” FOMO stands for “fear of missing out.”

“Biggest bubble in world history getting bigger. Biggest crash in world history coming. Buying more gold and silver. Waiting for Bitcoin to drop to $24 k. Crashes best time to get rich. Take care.”

“A confluence of events that includes easy money and government stimulus has created a situation where we no longer have to look back almost four hundred years to tulip-mania to wonder, ‘How could such lunacy prevail?’ We now are living with real time examples of modern, digital, tulip level bubbles. Despite these excesses, with economies re-opening and fiscal stimulus still flowing, we may still be in the early stages of what may later be viewed as the bubble to eclipse all prior bubbles….”

But more stunning is the fact that according to the OCC, JPMorgan Chase’s equity derivative contracts represent 63 percent of the total $4.197 trillion of equity derivative contracts held by all federally insured banks and savings associations in the United States. To put it another way, there were 5,033 federally insured banks and savings associations in the United States as of September 30, 2020 according to the Federal Deposit Insurance Corporation (FDIC). But just one of them, JPMorgan Chase, accounts for 63 percent of all equity derivatives.