Socio-Economics History Blog

Socio-Economics & History Commentary

Gregory Mannarino: FedRes Deliberately Created Bubbles to Save Itself

  • Published on Apr 11, 2017
    Analyst/trader Gregory Mannarino says, “The Federal Reserve has re-inflated a housing bubble. So now, those ‘toxic assets,’ those mortgage-backed securities are worth something. Now, they are going to sell these at a profit. The profit should going to the poor people who were kicked out of their houses and lost everything. That is not going to happen. The Federal Reserve has deliberately created bubbles to save themselves. If the Federal Reserve allowed the markets to do it’s one and only job, and that is to determine fair value, we’d be out of the woods by now. We wouldn’t be facing another war right now. They refused to do this. The free market has been stolen. We really could be on the edge of a major event that would force people into the debt market. There could be huge amounts of cash coming out of the stock market because of all this fear. There could be massive amounts of cash going into suppressed assets like gold and silver. Housing could come under pressure. We could be staring at the next real Great Depression.”


    In closing, Mannarino says, “The global debt problem is going to get monumentally worse. Let’s see anyone argue that. Does anyone here believe that the global debt problem is going to get better? That should tell you what you need to do. This is like adding 2 + 2. This should be so simple for people to understand what they need to do. . . . If you want to hold those pieces of paper with numbers printed on them, they are unbacked liabilities being dispersed by bankrupted governments. If you want to hold that, good for you. I can promise you I am going to be taking the opposite side to that trade, and I will win.”

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April 13, 2017 - Posted by | Economics, GeoPolitics | , , , , , , , , , , , , , , , ,

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