Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

We’re Partying Like It’s 1928; Are We Heading for a Crash?

  by    0   1

We’re partying like it’s 1928.

Of course, that was the year before the Black Tuesday stock market crash and the beginning of the Great Depression. During a recent interview on CNBC’s Power Lunch, Morgan Creek Capital CEO Mark Yusko said he sees a lot of parallels between today and 1928-1929.

I have this belief that we’re flowing toward the path of 1928-29 when Hoover was president. Now Trump is president. Both were presidents with no experience who come in with a Congress that is all Republican, lots of big promises, lots of things that don’t happen and the fall is when people realize, ‘Wait, it hasn’t played out the way we thought.'”

During her recent testimony before Congress, Fed Chair Janet Yellen continued to talk up the “strong” US economy. Last month, she said banks are “very much stronger” and another financial crisis is unlikely anytime soon. Stocks continue to climb. Analysts seem positively giddy about the employment numbers.

It’s a veritable party.

But as Yusko pointed out, there are some sketchy things going on in the other room. He says that too much stimulus and quantitative easing have resulted in a “huge” bubble in US stocks.

Yusko isn’t alone. A number of prominent investors and economic analysts have warned about growing asset bubbles pumped up by central bank policy. Nobel Prize winning economist Robert Shiller called stock market valuations “concerning” and hinted that markets could be set up for a crash. Several other notable economists have recently expressed concern about surging stock markets, particularly in the US. Marc Faber has predicted “massive” asset price deflation  – possibly of a drop of as much as 40% in stock market value. Billionaire investor Paul Singer recently said the financial system is not sound. And former Ronald Reagan budget director David Stockman said we should get ready of “fiscal chaos.” Even Donald Trump acknowledged it during the campaign, calling the stock market a “big fat ugly bubble.” But since his election, he seems more inclined to join the party and point to rising stocks as a symbol of his success.

Yusko also expressed concern about stagnant economic growth.

By the fall, we’ll have a lot more evidence of declining growth. Growth has been slipping.”

All of the partying on Wall Street and the election of Pres. Trump has lulled a lot of Americans into a false sense of financial security. During a recent interview at International Metal Writers Conference, Peter Schiff said we are in the eye of an economic hurricane right now. Investors need to take advantage of the relative calm and buy gold and silver.

I think there’s too much false optimism out there on the part of people who voted for Trump … I think a lot of people actually believe this is a game-changer, that he’s going to drain the swamp, that he’s going to solve all the problems, and people are now optimistic. Unfortunately, none of this is true. Nothing that Trump is likely to do is going to make any difference as far as the course we are on.”

Everybody loves a good party. But we all know eventually the party ends. And many times, it doesn’t end well.

Time Is Running Out on an Incredible Buying Opportunity

For a limited time, SchiffGold has an incredible buying opportunity on pre-1965 silver quarters, dimes and half dollars. This is the prefect time to prepare for the future and invest in junk silver. For more information on this special, limited-time deal, click here!

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Gold ETFs Chart Seventh Straight Month of Inflows

Gold-backed ETFs closed out the first half of 2020 with their seventh consecutive month of inflows and significantly above the highest level of annual inflows, both in tonnage and US dollar terms. Globally, gold-backed funds added 104 tons of gold to their holdings in June. Global holdings now stand at an all-time high of 3,621 […]

READ MORE →

Fed Minutes Show No Sign of Backing Off Monetary Hail Mary

Don’t expect the Federal Reserve to pull back on its monetary Hail Mary anytime soon. The central bank released the minutes from the June meeting yesterday. There were no big surprises, but they did reaffirm the Fed’s commitment to continuing its unprecedented monetary policy into the foreseeable future.

READ MORE →

Citibank Joins Mainstream Gold Bulls Forecasting Record Prices

Citibank has joined other mainstream gold bulls calling for record gold prices. Citi raised its gold price forecast this week. It now projects a three-month price of $1,825 per ounce and for the yellow metal to head into record territory in 2021. Citi analysts expect gold to eclipse the $2,000 mark early next year.

READ MORE →

Which Corporate Bonds the Fed Has Bought So Far?

Earlier this month, the Federal Reserve announced it would begin buying individual corporate bonds. Now we have our first glimpse at what that means in practice. On Saturday, the Fed released a disclosure statement that lists the bonds purchased by the central bank.

READ MORE →

More Mainstream Bullishness for Gold

Earlier this week, we reported Goldman Sachs now forecasts record gold prices within the next 12 months. Well, Goldman isn’t the only mainstream player turning more bullish on gold.

READ MORE →

Comments are closed.

Call Now