This Bubble, Too, Shall Collapse

“We’re heading into a horrendous fiscal crisis in the 2020s. And we’re going to have a choice in the upcoming election between the biggest spender to inhabit the Oval Office in the last 50 years and Elizabeth Warren, who’s even worse. This is a dire outlook.

“We’ve been sleepwalking for the last two or three decades. The Fed has enabled the politicians to essentially escape fiscal responsibility.”

That’s how I responded to Neil Cavuto’s setup for my appearance on his Fox Business show yesterday.

Imperial Washington is all about impeachment, impeachment, impeachment… and that’s the way the Duopoly wants it – “Inside the Beltway” Democrats and Republicans – because it means their perfidy goes unnoticed.

Well, not for long…

Not for Long, Folks

It’s time to recognize that the “Everything Bubble” is the most extreme, exaggerated, severe financial mania in world history.

It will, inevitably, collapse. And there will be massive losses, even greater than occurred in 2001 and 2008.

Wall Street is simply chasing what the central banks are doing. There’s no honest price discovery, no real mechanism of supply and demand. Nobody’s discounting the future of economic growth, productivity, and investment.

You’ve got algorithms and chart monkeys – CPUs and 29-year-old day-traders – in charge of the market.

When the big correction comes, there are going to be massive losses. And the panic will be great.

Everything Is Going to Collapse

All correlations will go to 1 – which means everything will fall: the good, the bad, the ugly, the indifferent.

There’s this old saying among traders that when the cops raid the house of ill repute, they carry out the good girls, the bad girls, and the piano player, too. That’s essentially what’s going to happen.

You can’t be saved by picking high-yielding stocks or conservative blue chips, or stocks that provide daily necessities like food – it doesn’t matter. Everything’s overpriced right now because of this huge financial distortion.

When the real correction comes – and our monetary central planners are revealed to be impotent and powerless – everything is going to collapse.

The time for speculation is over. We’ve had 30 years of central bank-subsidized speculation. We’re going to go into the time and era for capital preservation, and that means the highest priority is to not lose money. It’s to keep your capital safe.

We’ve recently taken steps to become more “active” in The Stockman Letter. Note, however, that we’ve stepped into this market with the best way to play gold right now…

دیدگاهتان را بنویسید

نشانی ایمیل شما منتشر نخواهد شد. بخش‌های موردنیاز علامت‌گذاری شده‌اند *

2 × 1 =