Robert Bernard Reich is an American professor, author, lawyer, and political commentator. He worked in the administrations of presidents Gerald Ford and Jimmy Carter, and he served as Secretary of Labor in the cabinet of President Bill Clinton from 1993 to 1997.
31 July Newsletter
"It’s starting to feel as if the financial economy is no longer moored to the real one. Treasury Secretary Scott Bessent went so far yesterday as to characterize the new “Trump accounts” — tax-deferred investment accounts created in Trump’s sweeping Big Ugly tax law earlier this month — as a “transformative tool” for building long-term wealth and a “backdoor for privatizing Social Security.”
Hello? So the Trump regime wants us to give up on Social Security and become gamblers in the stock and bond markets? At the very time when the finance is becoming so frothy that such gambling is exceptionally risky?
Well, you know the outcome: The little guys will get hurt and the biggest gamblers will get away with it because they’ll get out just in time or they’ll get the government to bail them out. That was the story of 2008. It’s likely to be the story again.
So, my friends, please beware. I’m not suggesting you cash in your stocks and bonds, but if I were you I wouldn’t follow the crowd into more risky investments. Again, I’m not an investment advisor, but there’s so much wild gambling going on right now that I fear we’re soon in for another financial crisis."
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