Financial analyst Rick Ackerman says the mother of all market meltdowns is a sure thing. It is just a question of when, and when it starts, it will simply implode at a stunning pace. Ackerman explains, “We’re in a situation now where any day something can happen. I think that the black swan will be something like the stock market starting down for no apparent reason. That in itself would trigger the implosion, and I think the only thing that is propping up the markets now is the mentality of . . . how bad can things be if the stock market is trading within shooting distant of all-time highs? I think the stock market is the main buttress of this enormous hoax that has been going on with easing (QE or money printing).”
Ackerman says when the end game finally crescendos, it will be stunning and quick. Ackerman contends, “It will be literally overnight. There are investors who say I’m smart and I’m nimble, and I’ll be out of this at the first sign of trouble. I think the first sign of trouble will be a little bit too late. You will wake up one morning, and something will have happened in the Asian markets that cause the U.S. markets to open way below their circuit breakers or threaten to break the dam. It could all happen overnight, and I think it will. It’s the nature of the markets.”
Ackerman says everything will shut down or be wiped out when the next crash explodes. Things like banks, brokerages and pensions can and will all go poof in a cloud of smoke. Ackerman goes on to say, “I don’t think anything will be left standing in the smoldering ruins. It’s very hard to imagine, but it is really going to be a complete disaster that is commensurate with the scope and scale of the lies we have been telling ourselves for so long. There are people who say you Chicken Little, doomsday, sky-is-falling guys almost seem to want the system to implode. I think the only way we get back to honest business is for a collapse to wipe away all the lies.”
One of the biggest lies comes from the Fed when it repeatedly keeps threatening to raise interest rates. Ackerman has been calling BS on a Fed rate hike for years and still contends, “I haven’t merely said the Fed wouldn’t raise rates. I’ve been shouting it from the rooftops. The answer to the question when will the Fed raise rates is never, and I am going to stick by that. That forecast has held up for nine years. So, it’s looking pretty good.”
One of the very big problems with a rate rise is not just the increased interest payments on the federal debt, but also with derivatives in the hundreds of trillions of dollars which could destabilize the financial system. Ackerman explains, “It’s a global thing. We would be ratcheting up the interest payments on a quadrillion dollar derivatives market and, as you can imagine, that would unsettle a lot of arrangements. . . . I am going to stick with lower interest rates with the whole world slipping into recession.”
Join Greg Hunter as he goes One-on-One with Rick Ackerman of RickAckerman.com.
(There is much, much more in the video interview.)
After the Interview:
Ackerman recently wrote about the constant threats of a Fed rate hike and the most recent head fake in September 2015. Ackerman said, “This latest little piece of kabuki can only add to the credibility of our own forecast, which is that the Fed will never raise rates. Okay, we were being facetious when we first made that prediction a couple of years ago; never is indeed a long time. But what kind of odds would you take to wager that there will be no rate hike for at least another ten years? You could probably get thirty-to-one from economists, editorialists, pundits and other useful idiots who never seem to tire of telling us that a rate hike is imminent. Realize that you would be within a year of collecting on the bet if you’d made it back in 2006, when the last rate hike was announced.”
Ackerman has some free information on the home page of RickAckerman.com. He also has a subscription service with a two week free trial you can find here.
Ackerman knows what time it is.
This discounts the possibility of the fed buying equities, either through a seperate entity or themselves, outright. Picture a world where the stock market stays at al time highs, but the fed just buys everything every time someone sells. The BOJ has been propping up the Nikkei in such a manner. Illegal in the US? The more relevant question would be “is there rule of law in this country anymore”? unless youve been alseep the last couple decades, the answer is no. And most people won’t care. They will be screaming and crying for the government and fed to “do something” and they won’t care if its morally right, or even legal. All they will care about is their evaporating pension or 401k. Not saying this will work, long term, but they will try all manner of underhanded things to keep the insolvent banks and the USD from going under. They haven’t tried helicopter money yet, either. I do believe we will see some kind of “helicopter money” in the US before a real collapse.
This risk seems plausible, but I don’t see what you do to address it. You can only hold so much tangible wealth at home. Precious metals may or may not be useful to buy stuff after a collapse (the track record varies in prior collapses around the world over the past 100 years) and may make you a theft target. Almost anything else is too bulky to stockpile significant amounts.
Clearly, your best bet is to wait out the collapse on some other PLANET and come back to earth when things return to normal.
I know what I’m going go do.I going go move in with Billy in kentucky . We will fight the heathens hordes together.Make our final stand on the Tennessee River.
Penn Head you could volunteer to be our runner.
A hundred years ago most countries were on the direct gold standard. Money was gold (and silver) coinage.
And large savings held in gold were most definitely useful after a crash since it wasn’t the gold that crashed.
You need to examine crashes over the last 60 or so years to get any historical perspective.
The thing about gold (and silver) is that it still exists in the same weight before, during and after a crash and can be converted into whatever new currency arises after an old one fails during a crash. Try doing the with Confederate Dollars, there’s still lots of them around in shoe boxes and such to this day.
If it all goes up in flames, the last thing you’ll see on TV is Jim Kramer and a real estate analyst saying “It’s never been a better time to buy!”