“Next Market Meltdown Means Frozen Financial System”
By Greg Hunter’s USAWatchdog.com
"Market analyst Lynette Zang has deep Wall Street experience and is starting to see a worse setup than just before the 2008 market meltdown. Zang explains, “The dollar is weak. All that is dog and pony. The real thing is they can’t stimulate the economy by growing any more debt. The system is based on compounding debt. So, it has to reset, and any wealth that is in the system gets reset too. They can keep the game going until confidence is lost. Once confidence is lost, it’s over, and I do think it’s close. the big kahunas are sucking as much wealth out of the system as they can.”
How close are we to another market meltdown worse that 2008? Zang says, “Every week I do an insider’s trading corner, and I show you what the insiders are doing generally, and then I do an individual stock. It’s pretty obvious. The insiders are getting out in droves. This is the second most expensive stock market in history. It’s more expensive than 1929. Also, there are no buyers on the other side of this market if a lot of people want to sell at the same time.”
So, how long can central banks keep the debt party going? When is the next crash? Zang says, “I am worried that it will happen before the end of this year. I think that is what they are trying to do with getting all the regulations. Since the banks have passed the stress tests, what are they doing? They are getting all these huge dividend payouts and all of these stock buybacks, which primarily benefit the guys on the top. So, I think they are getting ready for the crash. If they can hold it together, then they are going to want as much wealth out of the system. I am talking about the one percenters. If they can hold it together, we might get a little more time, but any black swan event, then it will be out of their control, and it will be game over. That could happen anytime.”
What would it look like to the man on the street? Zang predicts, “The Bank for International Settlements (BIS) showed how they would bail in the banks over the weekend. It’s pretty easy to see if you look across the pond to Greece. You will have no access to your wealth. You may have a pretty statement that says you have xyz (stocks) in there. You just can’t touch it. It will be the same thing with your bank account... basically, access will be gone. That’s what it will look like, and people are going to be freaked out. What do you do when the computer says no? There is a certain amount of cash in the ATM, maybe $60 a day, maybe $300 a day. Who knows? But it’s not going to be enough. So, that’s what it is going to look like. Most people will freak out because they have about three days of food in their house. Most grocery stores have about three days of food on their shelves. So, what happens after day six? People will be scared for sure, and they will panic.”
Join Greg Hunter as he goes One-on-One with Lynette Zang,
Chief Market Strategist at ITMtrading.com.