More Warnings of the Coming Market Crash
I’m not an economist. I did take a handful of econ classes in business school (in another century…). One was a banking system-related course with a dead honest professor. “Eye opening” sums that up. Then, in the past few decades, I read everyone from Smith to Hayek to Mises. I have some idea what’s going on most of the time.
Part of the process is watching signals and signs in the market and the overall society. There are patterns. And lately people more in the know than me have been sounding an alarm about what they see out there. I’ve run some of the calls. Here’s another:
Stephanie Landsman and the crew at CNBC covered David Stockman’s comments on the coming downturn. This echoes what Ron Paul, Jim Rogers, and even the Fed itself have been saying.
A downturn is coming.
We are overdue.
This one may be particularly bad.
One might expect that a man named David “Stock-Man” would understand the stock market. Beyond the surface coincidence, he certainly does. Here’s what he says is ahead: a 40-70% percent correction (collapse).
“There is a correction every seven to eight years, and they tend to be anywhere from 40 to 70 percent. If you have to work for a living, get out of the casino because it’s a dangerous place.”
Get out of the casino. Wow.
He blames Washington and especially the Federal Reserve (the two work in tandem).
“This is a bubble created by the Fed. We’re heading for higher yields. We are heading for a huge reset of pricing in the risk markets that’s been based on ultra-cheap yields that the central banks of the world created that are now going to go away because they’re telling you that they’re done.”
He thinks the Fed is unrealistic, Washington is idiotic, and Wall Street is “delusional.” That about sums it up.
If even part of what he, and others, are warning about comes to fruition – and it’s just a matter of time, really – then America is in for a severe recession.
Are you ready for it? Now might be the time to make the final plans for the storm.
Perrin Lovett writes about freedom, firearms, and cigars (and everything else) at www.perrinlovett.me. He is none too fond of government meddling.