Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24
How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - 17th Feb 24
Why Rising Shipping Costs Won't Cause Inflation - 17th Feb 24
Intensive 6 Week Stock Market Elliott Wave Training Course - 17th Feb 24
INFLATION and the Stock Market Trend - 17th Feb 24
GameStop (GME): 88% Shellacking Yet No Lesson Learned - 17th Feb 24
Nick Millican Explains Real Estate Investment in a Changing World - 17th Feb 24
US Stock Market Addicted to Deficit Spending - 7th Feb 24
Stocks Bull Market Commands It All For Now - 7th Feb 24
Financial Markets Narrative Nonsense - 7th Feb 24
Gold Price Long-Term Outlook Could Not Look Better - 7th Feb 24
Stock Market QE4EVER - 7th Feb 24
Learn How to Accumulate and Distribute (Trim) Stock Positions to Maximise Profits - Investing 101 - 5th Feb 24
US Exponential Budget Deficit - 5th Feb 24
Gold Tipping Points That Investors Shouldn’t Miss - 5th Feb 24
Banking Crisis Quietly Brewing - 5th Feb 24
Stock Market Major Market lows by Calendar Month - 4th Feb 24
Gold Price’s Rally is Normal, but Is It Really Bullish? - 4th Feb 24
More Problems in US Regional Banking System: Where There's Fire There's Smoke - 4th Feb 24
New Hints of US Election Year Market Interventions & Turmoil - 4th Feb 24
Watch Consumer Spending to Know When the Fed Will Cut Interest Rates - 4th Feb 24
STOCK MARKET DISCOUNTING EVENTS BIG PICTURE - 31st Jan 24
Blue Skies Ahead As Stock Market Is Expected To Continue Much Higher - 31st Jan 24
What the Stock Market "Fear Index" VIX May Be Signaling - 31st Jan 24
Stock Market Trend Forecast Review - 31st Jan 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Let’s Make Sure This Crisis Doesn’t Go to Waste

Stock-Markets / Financial Markets 2020 Jun 02, 2020 - 01:20 PM GMT

By: John_Mauldin

Stock-Markets

A stock market crash wasn’t 1929’s only big event. Coca-Cola (KO) launched a new slogan: “The Pause That Refreshes.”

Coke’s marketers sensed the economy was headed down. How do you sell a completely unnecessary beverage to a struggling country? It’s simple, really: You remind consumers that treating themselves is important, too. 


Now, in 2020, the entire world is paused. COVID-19 is horrible in more ways than I can count: lost lives, suffering, job destruction, shattered dreams and more.

None of it is refreshing. But the word has other meanings.

For instance, if you are working on a spreadsheet and refresh your screen, you see new, and possibly better, numbers.

Could this crisis, as bad as it is, “refresh” the world and solve some of our problems? Maybe.

Speaking at Mauldin Economics’ first-ever virtual Strategic Investment Conference in May, Eurasia Group and G-Zero Media’s Ian Bremmer said it’s possible.

Long before this pandemic, Ian was saying the world is in a “geopolitical recession.” The old order has been breaking down without a clear replacement, leaving what he calls a “G-Zero World.”

Part of the problem relates to a Milton Friedman quote: “Nothing is so permanent as a temporary government program.”

Think of the global institutions that arose from World War II and its aftermath: NATO, the UN, the World Bank, International Monetary Fund, the EU, etc.

Some have outlived their usefulness. Other need major reforms. But all still exist because over time they developed constituencies that fight hard to preserve them.

The same is true within national governments. In the US, we have institutions like the Federal Reserve, Social Security, Medicare and assorted regulatory agencies.

They do some good things and could do more. But none work as originally intended.

Ian suggested the pandemic might have a silver lining if the failures it exposes let us replace failed institutions with better ones, more suited to current needs.

Which institutions to whom? Take your pick.

  • The sudden ejection of millions from their jobs exposed huge shortcomings in the US safety net programs. A top-to-bottom overhaul might let them work better and cost less.
  • Our inability to provide adequate COVID-19 testing and get protective gear to medical workers revealed serious problems. Not just in the healthcare industry, but also the agencies like the CDC and FDA that govern it. The regulatory processes clearly impede progress, and it has been made manifest for all to see.
  • Across the pond, the EU’s prized openness and solidarity proved less so in a crisis. Members like Italy had to largely fend for themselves. The alliance needs a major overhaul if it is to survive.
  • Numerous emerging market states are heavily indebted and completely unprepared to handle this crisis in large part because the IMF made them so. That has to change.

Those are just a few things we could “refresh” in the coming months and years. I don’t know if it will happen but, as Rahm Emmanuel famously said, we shouldn’t let a good crisis go to waste.

Heck, this one could still bring positive change.

Just ask any of the 40 economic and investing all-stars who presented at Mauldin Economics’ recent virtual Strategic Investment Conference. We have all the video footage, slides and transcripts in one easy-to-access space. You really need to hear for yourself what’s in store for our post-coronavirus world.

The Great Reset: The Collapse of the Biggest Bubble in History

New York Times best seller and renowned financial expert John Mauldin predicts an unprecedented financial crisis that could be triggered in the next five years. Most investors seem completely unaware of the relentless pressure that’s building right now. Learn more here.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

John Mauldin Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in