Tuesday, May 31, 2016

The Economy: Greg Hunter, "Gregory Mannarino- It’s All Going to Collapse at the Same Time"

"Gregory Mannarino- It’s All Going to Collapse at the Same Time"
By Greg Hunter’s USAWatchdog.com

"Trader/analyst Gregory Mannarino says you better be protecting yourself for what is coming in the financial markets. Mannarino explains, “It’s just a matter of time.  Who knows when this actually rolls over–days, hours, months, who knows? There is no stopping it. All they are attempting to do is sustain it a little bit longer, and it’s only going to make this worse. The whole correction to fair value is going to seem like the mother of all collapses. It’s not a collapse in that sense. It is a correction to fair value because everything is just out of the realm of reality. There is no price discovery mechanism on anything—anything.”

On the Federal Reserve continually hinting at raising rates in the face of a very weak economy, Mannarino says, “I think the Fed is playing a very dangerous game with the market, and I mean it’s a game. We hear there is going to be a possible rate hike.  How did the market react? The market pulled back. Then in a day or two, we get a different Fed President saying hold on a minute, it may not be June. Then, the market goes back up higher. They are creating this market where it’s going up and down. So, these institutions are buying ‘calls’ and collecting cash on the bottom and buying ‘puts’ and collecting cash when it goes back down. So, they are fostering the wealth transfer even more. This is just more of the same. The Federal Reserve is a serial bubble blower, and what they are doing now is putting these little bubbles in there, too, so all this cash can be collected.”

On quantitative easing, or money printing, Mannarino says it has “never stopped.” Mannarino contends, “Here’s the proof right here on your show that they never stopped. How does the Federal Reserve keep interest rates low? They don’t have any magical powers. They can’t just make up a potion and drink it and their yields are going to stay low. The Federal Reserve has to print the cash out of thin air and buy bonds with it. What does this sound like? It’s quantitative easing, and it has never ever stopped, and it won’t ever stop.”

On the so called “recovery” in the U.S. economy, Mannarino says, “How is that even possible from a common sense standpoint when we have a labor force participation rate still at a four decade low? We have a money velocity rate at a four decade low. If cash is not moving through the economy, we cannot have a recovery.  If we have more people leaving the work force than are entering it, you cannot have a recovery. So, this is all part of the illusion.”

Mannarino goes on to say, “I am just waiting to see what they will do to prop this up further, or at least stop it from making a precipitous plunge. That is coming no matter what they do. The debt market here is on fire. It’s in big trouble here. Another alarm is the yield curve. The yield curve is flattening. This is a bad, bad omen. It’s a very ominous sign that something is lurking just beyond the horizon.”

In closing, Mannarino says, “We’ve never seen anything like this in world history. It’s unbelievable. It’s collective collusion between world central banks and their respective governments to inflate this global bubble in debt in an attempt to stimulate growth. It has not worked. It’s very simple. If they could have fixed it, they would have fixed it by now. They can’t do it. 2008 was the ‘party over’ moment.  We are existing now in a terminal side effect... It’s all going to collapse at the same time.”

Join Greg Hunter as he goes One-on-One with Gregory Mannarino, founder of TradersChoice.net.

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