“As previously mentioned, this spread has been inverted now for 120 straight trading days — its third longest streak since at least the early 1980’s. The table below lists these occurrences. The last time was in early 2007, about ten months before the stock market peak, just before the financial crisis. The S&P 500 was barely negative one year later and was down 40% over the next two years. The time before that was in early 2001, when the tech bubble was bursting. The S&P 500 fell 11% over the next year and nearly 30% over the next two years.”
This is big news.
We’re looking at a stock meltdown on par with the 08 carsh.
But the dollar index keeps dropping, so there can be no bailout and not key rate cuts.
1. The Treasury yield curve is inverted
2. The M2 money supply is declining
“We are not through with bank failures,” the Berkshire Hathaway Inc. chairman and chief executive officer said in an interview on CNBC Wednesday. “Dumb decisions” by bank managers shouldn’t be “panicking the whole citizenry of the United States about something they don’t need to be panicked about.”
Britain’s money-supply economists, who emerged from obscurity in the pandemic by correctly anticipating sky-high inflation before anyone else, are sounding the alarm again. Money supply growth is collapsing in the UK, eurozone and US, and they read that as a warning of recession and deflation. Central bankers have raised interest rates too far and, if the so-called monetarists are proved right again, they say there should be a “clear out” of officials.
A major financial crash will likely hit by mid-June, Harry Dent, economist and author of several best-selling books, told the David Lin report, last week. Dent, who has a history of making controversial predictions, believes that the current market bubble will burst and result in a financial meltdown.
The bubble is a result of the US Federal Reserve’s loose monetary policy, which has artificially inflated the stock market, according to Dent. He expects the S&P 500 to collapse by 86% “in this crash” and the Nasdaq to plummet by 92%.
The crypto market will go into a tailspin alongside stocks, the economist warned, predicting that Bitcoin will tumble 95-96% from its November 2021 high.