Economic Crisis Warning

Are we heading for a period of economic upheaval that will last for decades?  That's the viewpoint of Richard Bookstaber, Chief Risk Officer of the Fabric platform, as expressed in a recent New York Times op-ed, and as this week's guest on WealthTrack.  His analysis of the future is quite a bit bleaker than most on Wall Street but is still well worth the listen.  Enjoy the weekend.   

June 15, 2023 Dear WEALTHTRACK Subscriber, Are we “entering a new epoch of crisis, a slow-motion tidal wave of risks that will wash over our economy in the next decades”? That rather alarming point of view is from a recent essay in The New York Times, penned by noted risk expert, Richard Bookstaber. Bookstaber, a longtime guest on WEALTHTRACK, is worth listening to. He has a proven track record of spotting risks and helping private and public institutions manage them.  Bookstaber is Chief Risk Officer of Fabric, a platform he created in 2018 to provide risk management to wealth managers and individuals. He previously held top risk management positions at a number of institutions, several at critical times during financial crises. He worked with the SEC and Treasury in the immediate aftermath of the Global Financial Crisis, helping build out the risk management structure for the Financial Stability Oversight Council and draft the Volcker Rule, which restricts proprietary trading by banks.   He was at Morgan Stanley during the 1987 market crash, Salomon Brothers during the 1998 failure of hedge fund Long-Term Capital Management, and just before the Global Financial Crisis warned of the dangers of financial derivatives and leverage in his 2007 book, A Demon of Our Own Design: Markets, Hedge Funds, and the Perils of Financial Innovation, critiquing some of the complex financial instruments he helped create. You can find our previous interviews with him on WEALTHTRACK.com. Currently Bookstaber is tracking what he calls slow-motion risks including climate change, demographics, deglobalization and artificial intelligence which he believes represent threats to the economy, the stability of society and even to civilization itself. In this weekend’s episode he also assesses some of the more conventional challenges facing the economy and markets shorter term.    In our EXTRA feature Bookstaber will give us a sneak preview of the book he is working on about risks to civilization. Intriguingly its working title is: “From Wild West to Mad Max”!    If you miss the show on public television, you can watch it on our website over the weekend, along with our past programs and our guests’ One Investment recommendations.  You can also find the WEALTHTRACK podcast on Stitcher and SoundCloud as well as iTunes and Spotify. Have a Happy Father’s Day weekend. I will be thinking of mine with love and gratitude. Make the week ahead a healthy, profitable and productive one! Best regards, Consuelo Facebook Twitter WEALTHTRACK Site YouTube Channel As always, if you miss this week’s program, it will be available on our website. Also, I want to thank all of you who are following me on Twitter For those of you active on Facebook: You can connect with us on our Consuelo Mack  WEALTHTRACK  page.