In recent times, we've witnessed alarming clips on the news and social media that highlight the stunning moral decline plaguing both Main Street and Wall Street.
As we connect the dots between these two realms, a disconcerting truth emerges: the collapse we fear may be imminent, and it could be just around the corner.
This article will delve into three essential steps that shed light on this unsettling trajectory.
By analyzing cycles, moral hazards, rising crime rates, and societal trends, we can gain valuable insights into current affairs and what lies ahead.
Unraveling Cycles and Moral Hazard
To understand the progression towards collapse, we must first examine cycles and the moral hazard perpetuated by governments, central planners, and authoritarians.
The familiar adage, “hard times create strong men, strong men create good times, good times create weak men,” serves as our framework.
From the mid-1990s to 2020, we witnessed a gradual increase in moral hazard, particularly within Wall Street. The bailouts, such as the one for long-term capital management, elevated the levels of moral hazard even further.
Each subsequent crisis, from the dot-com bust to the global financial crisis, witnessed a higher degree of moral hazard.
The actions of central planners and the government, driven by their desire to prop up the financial system, unleashed a trickle-down effect that ignored the moral hazard it created within financial markets.
Simultaneously, we find ourselves in the midst of a mega-cycle known as the fourth turning, where hard times breed weak men.
This combination of increasing moral hazard and societal upheaval sets the stage for impending collapse.
The Moral Decay of Wall Street
To visualize the moral decay we have witnessed, let's examine a chart (see video above) representing Bed, Bath and Beyond's stock performance from August 2022 to April 2023.
It serves as a proxy for the broader state of financial markets. The chart reveals a steep decline in stock value, followed by heightened volatility. A crucial spike in February 2023 holds significance as it exposes an alarming trend.
Bed, Bath and Beyond's management orchestrated a scheme to sell worthless stock directly to retail investors, capitalizing on the growing enthusiasm of “YOLO traders.”
This flagrant manipulation, exemplified by collaboration with hedge funds like Hudson Bay, demonstrates the extent to which moral bankruptcy has permeated Wall Street.
The actions of Bed, Bath and Beyond's management and the indifference of investors highlight the distorted incentives prevalent in an environment where money is cheap and moral boundaries are increasingly blurred.
Weak Men and Rising Crime
Examining the unemployment rate from the late 1960s to now uncovers a perplexing paradox. In 2023, we find ourselves at historically low levels of unemployment, coinciding with a surge in theft and shoplifting incidents.
Major retailers, including Target, face staggering losses due to rampant theft. This alarming trend illustrates a decline in respect for the rule of law, private property, and overall civility.
Society's moral fabric is torn, with a lack of clarity on basic distinctions and a diminishing recognition of property rights.
As society grapples with an inability to differentiate right from wrong and struggles to define basic concepts, such as gender, we witness a precipitous decline in moral values and a breakdown in the creation of wealth.
The convergence of rising crime rates, societal decay, and the erosion of entrepreneurship underscores the collapse already underway.
While the path to collapse may appear grim, it is crucial to recognize that it is part of a cyclical pattern.
We can navigate the challenges ahead by understanding the interconnectedness of cycles, moral hazards, rising crime, and societal trends. The journey to renewal starts with recognizing the moral decay and distorted incentives plaguing our society.
From this recognition, strong individuals will rise, ushering in a new era of prosperity and stability.
As we confront the unraveling moral fabric, let us remain vigilant, seeking to restore integrity, resilience, and a renewed sense of purpose in our collective pursuit of a brighter future.