Regardless of our opinions about President Carter and his legacy, his Farewell Address is worthy of our attention and study. On Presidents Day 2021, I invite you to read/watch President Carter’s Farewell Address from 40 years ago. As a Washington outsider, Carter was relentlessly mocked and undermined by the Establishment, as insiders’ loathing of outsiders knows no bounds.

Why would anyone sell when further gains are guaranteed? Because the gains are unreal but the losses are real. When markets are soaring and your portfolio is rocketing higher, the gains seem unreal. Did I really make that much in one day, week, month? Wow!

The middle class has already collapsed, but thanks to debt and bubbles, this reality has been temporarily cloaked. What collapsed the middle class? In many ways the answer echoes an Agatha Christie mystery: rather than there being one guilty party, a number of suspects participated in the collapse of the middle class.

Unfortunately for those at the top who’ve benefited immensely from speculative bubbles, speculative bubbles don’t create a vibrant middle class–they push what’s left of the middle class off a cliff. What exactly is the Middle Class and what unique role does it serve in the economy?

Please study these charts as a means of understanding the inevitability of economic stagnation and a revolt of the decapitalized middle class. I’ve been covering the decline of America’s middle class for over a decade with charts, data and commentary on the social depression that has accompanied the decline.

This heavily managed ‘market structure’ is far from equilibrium and extremely prone to instability. The relentless melt-up in stocks offers ample evidence that the market is rock-solid and that any decline is an enormous opportunity to buy the dip. That this has worked splendidly for the past 13 years cannot be denied.