MANNARINO: Building a scorched-earth economy

We can expect A NEW LEVEL of “Financialization” the likes of which have never been seen before

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BY GREGORY MANNARINO, TradersChoice.net

So, now THE Wall St. SUPERBANK J P Morgan has now jumped on the S&P 500 8K for 2026 bandwagon.

What this means is we can expect A NEW LEVEL of “Financialization” the likes of which have never been seen before…

I am calling this FRANKENSTEINISM…

Let’s start with this.

Deutsche Bank. S&P 500 at 8,000 by end 2026, the most bullish big bank call on the Street.

Morgan Stanley. S&P 500 at 7,800 by 2026.

Now… JPMorgan. Their base case around 7,500 with open talk of the index surpassing 8,000 if the Fed eases more aggressively.

KEY POINT. More Fed intervention/backstops. More artificial rate suppression. More fake non-productive liquidity. Much more debt. Faster/and accelerated currency destruction = Financial Frankensteinism.

KEY POINT. Financial Frankensteinism DEFINED. A stitched-together, unnatural market “system” kept alive by a constant drip of central bank juice walking us all straight into a scorched-earth real economy.

The 8,000 Script.

Let’s start with JP Morgan… who is RIGHT NOW outwardly admitting the S&P’s forward P/E is already around 23x, (not far off Dot-Com peak valuations). Yet still is pushing a bullish case, (with upside toward or 8,000, or even higher, if the Fed cuts harder).

Deutsche and Morgan… also on the same time frame. Just coincidence?

Key Point. At 23x forward earnings, we are already in Dot-Com bubble territory, but these mega-banks are saying: “Keep money cheap, keep the liquidity flowing, and we can drag this thing to 7,500–8,000 or beyond.”

Why this IS Frankenstein Economics.

KEY POINT. A Frankenstein monster/thing is built from dead parts held together by artificial power. That’s exactly what this system is now… DEAD PARTS HELD TOGETHER BY ARTIFICIAL POWER.

So… how do they get to S&P 8,000? Open The Floodgates.

To push an already Dot-Com level bubble market that much higher, while the real economy weakens, you need three things.

1. Aggressive Fed easing, MORE SO than is currently priced in. Faster cuts, more liquidity, and potentially new facilities/backstops. With debt loads at record highs, every cut now is a bigger accelerator than cuts in prior easing cycles.
2. Ongoing fiscal and credit engineering. Massive deficits and new “stimulus” cash already sloshing around the system. (This is already stealth QE). So instead of clearing bad debt, they just re-label it.
3. Narrative cover, AND THIS IS THE BEST ONE. Yes, valuations are high, they say, (referring to the mega banks), but this time it’s different. (It’s NEVER different).

What they ARE building is not a free market. It’s a lab-creation/Frankenstein with dead debt propping up the corpse.