Futurist and economic researcher Chris Martenson says we are not at the end of a business cycle but “. . . at the end of a credit cycle.”
Martenson warns, “Here’s why people need to be concerned. Credit cycles, when they blow up, are really, really destructive..."
"2008 to 2009 was very destructive. Instead of realizing the error of their ways, they went for a third. This is the most comprehensive credit cycle that we have seen. Remember, bubbles have two things that they need. Number one, a good story that people can believe in and, of course, it’s a false story. Number two, ample credit. That’s what the Fed and central banks of Japan and Europe have done. They just flooded the world with credit. Now, we have bubbles everywhere. When these burst, it will be the worst bursting in anybody’s lifetime because we have never seen anything like this.”
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I’ve read Martenson’s opinions for a few years now. I think he is correct about the severity of the next downturn. Of course the bankers will benefit. They always benefit. They rig all of the markets in their favor.
ReplyDeleteGet out of debt now!
Good points. I hope he's wrong.
ReplyDeleteCar dealers are the worst culprits: how else can you get $10 grand on your trade-in for a vehicle worth 3k?
They tie it into the new loan and then you're underwater forever. Same with leases.
At least with credit cards, you can stop using them and then pay them off.
I've heard this over and over again since the recession started in 2008. I listen to the trends forecast from Gerald Celente and read Harry Dent. The market has been artificially propped up by the Fed since then. Until interest rates go up again, the stock market is the only way to really make any money in this economy. I don't see that changing anytime soon.
ReplyDeleteI guess eventually they will be right, but they have been predicting this for over 15 years. Either way, the economy really hasn't improved that much since then and the the prices and taxes keep going up, while incomes are stagnating.
The bad times just keep coming, and if we have a correction, what does it matter? The stock market hasn't reflected the real economy and the real suffering of the average man and woman on the street.
Either way we are screwed!
It was even predicted back in 1975. Remember Howard J Ruff and the Ruff report? His book, how to prosper during the coming bad times.
I group them all together with all the end times prophets who keep telling us the end is near and the rapture has started!