The Peter McCormack Show #162 - Mike Green - The Economy is Collapsing, Time to Prepare
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Apr 2, 2026 A wide-ranging look at how markets and retirement systems may be disconnected from reality. They probe passive investing’s mechanical grip and the risks of a flow-inelastic market. Geopolitical shocks, monopolies and regulatory capture get linked to rising inequality. They also flag how AI and credit stress could reshape jobs and strain younger generations.
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Retirement Rewiring Created A Thrift Paradox
- Retirement shifted from defined income to asset hoarding, creating oversized asset pools older cohorts underspend.
- This Keynesian paradox of thrift reduces younger generations' income and access to assets like housing.
Flow Inelasticity Creates Crash Tipping Points
- Rising flow inelasticity means ever-larger price moves for given investment flows, creating switch-like crash risk.
- Green's model suggests a tipping point where passive market share (>~65%) could trigger discontinuous price declines.
Economists Hadn't Read Adam Smith
- Green presented to the London Institute of Mathematics about social safety nets and reset costs and found many economists hadn't read The Wealth of Nations.
- He uses this to argue economists sometimes misunderstand core capitalist principles and moral framing.