NOTE: Mike Stathis predicted the precise details of the financial crisis in his 2006 book, America's Financial Apocalypse.
The Jewish Mafia REFUSED to publish this landmark book because it exposed the widespread fraud committed by the Jewish Mafia.
Instead, the Jewish Mafia published useless marketing books written by their broken clock tribemens (like Peter Schiff's useless book which was wrong about most things and was written a year AFTER Stathis' book).
Stathis also released a book focusing on strategies to profit from the real estate collapse in early 2007.
The Jewish media crime bosses prefer to simply ignore those who speak the truth and threaten to expose them as the best way to hide the scams from the public.
In contrast, the Jewish media crime bosses continuously promote Jewish con men and clowns who have terrible track records as a way to enrich them all while steering the audience to their sponsors, most of which are Jewish Wall Street and related firms. Figure it out folks. It's not rocket science.
Mike Stathis holds the best investment forecasting track record in the world since 2006.
So why does the media continue to BAN Stathis?
Why does the media constantly air con men who have lousy track records?
These are critical questions to be answered.
You need to confront the media with these questions.
Watch the following videos and you will learn the answer to these questions:
You Will Lose Your Ass If You Listen To The Media
My 2 cents on the Bailout
Rather than accept the bailout of Fannie and Freddie, Americans need to start asking some critical questions to our leaders. If they were “too big to fail” as Paulson, Bush, Bernanke and other cronies insist, why were they allowed to operate with exemptions from the SEC Acts of 1933 and 1934?
If they were “too big to fail” why didn’t Washington take over the GSEs in 2004 after the accounting fraud was detected.
If they were “too big to fail” why were they transformed into shareholder firms with virtually no regulation, no accountability, no transparency and allowed to act irresponsibly?
The implied backing by the government made it certain that a bailout was eminent. But doesn’t government backing also come with accountability? You might want to review a couple of articles I wrote a while back on Fannie and Freddie.
Anyone who believes the losses from Fannie and Freddie will be limited to Washington’s $25 billion figure is naïve. Keep believing the same liars who have done nothing but mislead you throughout this entire crisis and you will be left with nothing. I’m confident the losses will be at minimum $100 billion, and possibly $200 billion. But I wouldn’t be surprised if the losses were higher.
McCain and Obama talk about the need for more accountability, specifically in the financial industry. Apparently, they don’t seem to understand the meaning of the word. Accountability to me means those who engage in unfair business practices, fraud and other exploitative activities face the jury. Yet, Franklin Raines, former CEO of Fannie Mae is doing quite well after accounting fraud was exposed under his watch.
Let me be clear. In my opinion, Mr. Raines belongs in prison, along with hundreds and perhaps thousands of others who orchestrated this catastrophe with reckless disregard for anyone except their own selfish greed. Instead, Obama is consulting him for advice on the housing crisis. What a huge mistake.
More Lies from Bush
Bush told Americans this bailout would ensure a more stable housing market for Americans. What he didn’t say is the obvious….it isn’t going to help current homeowners. This record-setting bailout only works to refuel America’s swollen credit bubble. And in the process, it only helps the banks.
If taxpayers are going to fit the bill for this mess, don’t you think all executives from Fannie and Freddie from the past 8 years should be forced to return all compensation they received? If they don’t think that is fair, ask them what they think about a 10-year prison sentence.
In the short-term, mortgage rates will drop since credit and liquidity risk for the mortgage machine has eased. In addition, the dollar will rise (as long as no new banking concerns surface) while gold and oil will fall (independent of any weather related damage in the Gulf or announcements by OPEC to cut production).
But the problem isn’t so much that consumers can’t find good mortgage rates. Rates have been very low for many years. The real problem is trying to convince people to buy homes as prices continue to fall while inflation soars. The idiots in Washington seem to think we can consume our way out of this mess and they will be proven wrong…again, just as they were a few years ago.
So for now, forget Fannie and Freddie. It was obvious what would happen. It’s a played-out soap opera for now. If it wasn’t obvious for months what would happen, you might consider changing who you listen to for insight. I won’t waste any more time dealing with this issue until after November, when the ultimate direction of the GSEs has been determined by the next president.
And if you think the bailout will give the stock market a permanent boost you should apply for a spot on CNBC because you have no idea what’s going on. We are just now in the early stages of the de-leveraging process. And it’s going to get really nasty, not just in the US, but around the globe.
More Realities on Greenspan
In 2006, I proved irrefutably in Ph.D. thesis-like fashion that the economy was very weak, with no real improvements registered since the dotcom collapse. This thesis was turned into a book, America’s Financial Apocalypse, originally meant for institutional investors but later revised for the average Joe. Yet, it took a lot longer to write than Alan Greenspan’s mysterious Ph.D. thesis, which for some reason NYU has refused to release. Hey Alan, are you going to come clean? At least admit you screwed the US economy and the American people. It might actually improve your horrendous reputation. See here and here.
While millions of consumers are struggling, Alan Bubblespan appears to be doing quite well. He now works for Paulson & Co., which gladly hired him after clearing $13 billion from the sub-prime mess. That’s $13 billion transferred from previous homeowners to a hedge fund, compliments of the Bubble Maestro. The man obviously has no conscious.
Let’s forget about Alan for now. The history books will take care of him. I want to move forward and focus on what’s next since I haven’t seen many out there with the insight and motivation to tell you. Those who have been reading my articles and books or listening to me on the radio know I have been dead right. I’ll review some of these forecasts shortly.
History Always Repeats
Can you imagine what would happen to the bank, Wall Street, real estate and mortgage executives if they were in China? They wouldn’t be around by now. But this is America, where CEOs commit accounting, shareholder and taxpayer fraud, destroy companies and leave with $200 million while taxpayers and investors end up screwed.
It’s happened in the past; not just during the dotcom bubble but over and over for decades. And of course it’s happening now. You better believe it’s going to happen again and again unless you call for the heads of these crooks and vote every single member of Congress out of office.
As we know, politicians will call for action and accountability but only a few scapegoats will be selected - a couple of guys from Bear Stearns, Credit Suisse and a few others. But not the CEOs. Never the CEOs. That would be un-American.
Let me be clear. America is a mess and Washington is a joke. If there is no real punishment for negligence and fraud, of course they aren’t going to be on the ball. Of course it’s going to happen again. It’s the same rules of conduct for CEOs.
President Bush has created quite a legacy for himself. One that might only be equaled only by Alan Greenspan. But of course most people have short memories. As a consequence, it is likely that in the future, there will be another Bush in office and another Greenspan as Fed chairman. Now I understand why it’s so important to study history.
I continue to be amazed by so many out there, from the pundits with their agendas to the so-called experts who zoom in on every grain of short-term optimism with an electron microscope while explaining away the reality. Not much has changed since I last wrote. Let me repeat in case you haven’t been following me. We are going to see…
- An earnings meltdown
- Hundreds of bank failures over the next few years
- Hundreds of hedge fund blow ups
- Soaring corporate defaults (already beginning)
- A huge junk bond market (soon to come)
- A large oil correction which will rebound and make new highs down the road (in progress)
- Real estate prices collapse by 30% (35% worst case scenario)
- DJIA falling to the low 10,000, and possibly to the 9000s thereafter
- And probably somewhat of an improvement in certain sections of the economy in 2009, specifically housing, due to a decrease in ARM resets
- Soaring problems in housing in 2010 and 2011.
- Soaring mortgage and interest rates in 2011
- Global recession
- 15 million foreclosures by 2016 (this 2006 estimate will probably be too low)
- Several defaults by US cities
- Resurfacing of the pension crisis
- Bailout for banks, autos and airlines
- A rebound in the global economy in a few years for most nations with Asian and Latin America leading the way, while the USA lingers
- I can almost guarantee you that by 2012, oil, gold and inflation will be at new highs while the dollar will have reached new lows.
Take note that many of these forecasts were made in 2006 and have not been changed. Now if we could just find one Washington or academic economist who made forecasts beyond a month that held up, we might be getting somewhere. Don’t hold your breath.
If you think I’m a perma bear or some doom and gloomer you are very wrong. I am a realist and I get paid to be right. I don’t get paid to sell anyone lies like most of the pundits.
Remember, I’m not selling anyone one gold or some bear fund. I’m writing to expose these liars and guide you through this disaster.
I’m writing to help you understand that you need to stop listening to the media because they are lying.
Some of them are just that stupid that they believe the crap they are fed by Washington and the “experts.” When the US economy turns around you had better believe I will be the first to write about it with excitement. Based upon the changes needed, I do not anticipate that happening for several years.
There is only one way to stop the pain. Let the wounds bleed out and heal on their own. Thereafter, healthcare must be universal, free trade must be restructured, and America’s badly broken free market system must be restructured.
Unfortunately, those reforms simply aren’t going to happen as long as the media continues to lie and as long as lobbyists exist, because as you might realize by now, corporate America controls Washington. And together with the banks, the media has partnered with these elitists to maintain their control.
Dollar Bulls Watch Out Below
Now let’s focus on the dollar because quite frankly I’m getting a bit annoyed at those who are claiming the rally is real. Anyone who is remotely familiar with asset price movements knows that even the biggest declines are eventually met with corrections, just like soaring oil is correcting.
You’ll recall I first mentioned the likelihood of a 30% to 40% correction when oil was making its highs, so the current sell-off is not at all surprising. The key thing to focus on is the long-term trend. Until it changes you need to understand that the dollar is headed for new lows. I cannot say when. But I will guarantee you it is unless there are significant fundamental changes, which would take several years of very aggressive domestic and foreign economic reform.
Keep in mind that the weakness in the dollar is a reflection of the inherent weakness in the US economy. The dollar is the tail of the economy. And as we know, the tail does not wag the dog unless you live in la-la land like so many in Washington.
So for those of you who seem to think that a strong dollar will strengthen the economy you are wrong. Only by creating a strong economy will the dollar strengthen. And I am talking about a truly strong economy; one that creates high-quality jobs in America, not overseas; one that leads to surpluses instead of deficits. And one that leads to affordable basic necessities. In fact, the only recent strength in the economy has been due to a weak dollar which has boosted exports.
Once again, if you dare venture into the US stock market, I advise you stick to health care and oil. I like UnitedHealth (recently sold and waiting for the pullback to bottom) and Pfizer.
As for oil, I advise you to stick with the oil trusts. It’s a great time to enter (or reenter) positions in some of these trusts like I plan to do. I’ll add that some of the oil explorers are beginning to look attractive, but I currently do not see anything absolutely compelling.
If you want an idea where oil is ultimately headed, ask God. Anyone who claims they know for certain is either an idiot or lying. For whatever it’s worth, I made some forecasts a month ago, which show probabilities for each price ranges. Of course there are always a few other names in other industries that will have very compelling valuations, but my call on healthcare and oil is for passive investors.
If I turn out to be right, the smart money is gearing up to short the dollar and buy oil….not now, but soon. As well, they are waiting for compelling buy signals for gold and silver. For now, the GSE bailout is sure to force both down. The suckers are loading up on the dollar. What they fail to realize is that the real dollar crisis has yet to occur.
Fooling You with Simpleton Arguments
The pundits and economists continue to make simpleton arguments, such as the current conditions are no way like the depression.
They claim that the government made many changes that would prevent the same thing from happening again.
They claim that depressions cause deflation.
Sure. But that does not mean inflation cannot be the lead into a depression.
If things are so different now, why is the US approaching the price declines in real estate seen during the depression?
If things are so different now, why has the Fed had to resort to measures not seen since the depression?
If things are so different now, why did the New Deal solution to the depression era real estate crisis (Fannie Mae) collapse?
All of you guys in denial really need to get with the program.
The Next Great Depression
No we won’t see 33% unemployment like in the depression. Why?
Well for starters, Washington fudges all of the data. I have discussed this in detail in the past.
As well, the bar for what are considered jobs has been lowered since the depression. Today, you can say you’re employed if you’re a part-timer, you work at McDonalds, you’re a valet or massage therapist (no disrespect to any of you who might be employed in these occupations but let’s face it, they don’t give you a pension plan or healthcare benefits).
Instead of massive unemployment, we will see significant unemployment combined with massive underemployment. Already, my estimates are that the real unemployment rate is approaching 9% while the underemployment rate is 20 to 25%.
Over the next few years, the underemployment rate will continue to increase and could top 50%. As well, we won’t see banks close their doors because we have the FDIC. Sure, it will run out of reserves most likely within the next 2 years, but that doesn’t matter because the Fed will just print more money, causing higher inflation. All of this will put further downward pressure on living standards.
The devastation won’t be due to a crisis, it will be only heightened by a crisis. The real devastation will be due to the transfer of wealth and jobs overseas. It will be a silent depression.
The Silent Depression
In a few years, the real estate and banking crisis will have cooled off and Washington will start reporting much improved numbers; numbers that will continue to be manipulated.
In reality, things will only get worse. Real wages won’t budge, inflation for basic necessities will remain high and most likely be higher, and job quality will continue to decline. It will be a silent depression because there will be no crisis.
You won’t feel the full effects on any given day. If you’re in the lucky majority, you will go to work and carry out your life as usual. But you just won’t be able to make ends meet like in the past. Each year things will get worse so you’ll spend more on credit.
It will be more difficult for your children to raise their income status because higher education is becoming an unaffordable luxury for the wealthy. Millions will be stuck in slave labor, working for low wages and no benefits. And they won’t be working in factories churning out goods for the global economy. They will be working in service jobs, tailoring to the needs of America’s wealthy.
And when you retire, only then will you realize that you’ve lived through a depression because you will run out of money. If you are lucky enough to have a home, you might have to end up selling it to pay for your medical bills, even if you have health insurance. The smaller minority will have a much worse fate.
What the “experts” don’t get is that this will be a depression that will be much more difficult to reverse because it will be gradual. There will be no urgency.
Many will wake up one day in a few years and realize that they just can’t make ends meet; they’ll have very little if any retirement assets. It will be a continuation of declining living standards to a point that could lead to some major societal problems.
So What’s Next
Before I give you my best guess as to the future, you might want to check back to an article I wrote on May 4, 2008 because it sums up the big picture.
Besides the forecasts discussed above, I am willing to bet there will be a massive collapse of the CDS market. I have mentioned this several months ago but it is worth mentioning again. Most likely, once the newly proposed changes for these derivatives take affect in a few months, Washington will think the problem has been fixed.
But I’m willing to bet we are going to see a huge derivatives meltdown which will most likely be triggered by hedge fund failures. Whatever happens, I can state with confidence that the end is far from over. Remember, most banks still have to unwind the 30x leverage. And the margin requirements are increasing each day for hedge funds. The winding down process is going to create a global apocalypse. YOU HAD BETTER BE PREPARED.
On a positive note, it’s not the end of the world so go out and have a beer and try to humor yourself while making fun of all of the dirty, rotten, crooked, lying idiots who robbed you blind. Meanwhile, they’ll be sitting in their yachts waiting for the storm to pass so they can get in on the next scam. This is the reality of America after all.
See Our Copyright Policy
Copyright © 2008-2015. AVA Investment Analytics, LLC. All Rights Reserved.
Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher.
These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.
Article 19 of the United Nations' Universal Declaration of Human Rights:
Everyone has the right to freedom of opinion and expression; this right includes freedom to hold opinions without interference and to seek, receive and impart information and ideas through any media and regardless of frontiers.
More On US Markets
Opening Statement from the January 2016 Intelligent Investor
Opening Statement from the January 2016...
Important New Audio Released for Members
We have just released a very important audio...
Our Clients Avoided Being Exposed to the Market Collapse
For those of you who might be wondering if Mike...
Intelligent Investor June 2014 Opening Statement
Opening Statement from the November 2015 Intelligent Investor
Opening Statement from the November 2015...
Opening Statement from the October 2015 Intelligent Investor
Opening Statement from the October 2015...
Mike Stathis is Offering a $100,000 Reward
In August 2009, Mike Stathis posted a reward...
Opening Statement from the December 2014 Intelligent Investor (Part 3)
Opening Statement from the December 2014...
Dividend Securities Return Cash to Investors at Record Pace
For the 15th consecutive quarter, dividends per...
Mike Stathis is THE ONE
Can anyone offer any evidence that there is...
Who Do You Think Nailed the Latest Market Selloff AGAIN??
Mike Stathis is simply the best. If you aren't...
Stathis Nails the Market Correction in April 2014
May 2014 Intelligent Investor (Part 3) Opening Statement
Opening Statement from May 2014 Intelligent...
Opening Statement from April 2014 Dividend Gems
Originally Published on April 17, 2014 from the...
Opening Statement from April 2014 Intelligent Investor (Part 3)
Opening Statement from April 2014 Intelligent...
March 2014 Opening Statement Dividend Gems
Originally Published on March 16, 2014 from the...
March 2014 Opening Statement Intelligent Investor Part 3
Although we successfully navigated the most...
June 2013 US Stock Market Forecasts
The release of this video is part of a new...
Proof that Mike Stathis Has the Leading Track Record on the Economic Collapse
We will be making more of these videos in the...
ANOTHER Security from Our Recommended List Gets Bought Out
Today, WellPoint (WLP) announced a $4.46...
Is it Too Late to Make Money from Our Video Series?
We have received several inquiries recently...
We Predicted the Market Correction AGAIN
Here, we provide readers with a glimpse of our...
Market Guidance from March 2012 Dividend Gems
In late January the Federal Reserve Bank...
Dividend Gems Destroys the S&P 500 Index AGAIN
Last week, we showed how the Dividend Gems...
Another Huge Winner in a Few Weeks
Another Security from the Intelligent Investor Soars
On April 5 before the U.S. market opened, we...
We Pin-Pointed the Past Two Market Tops and Bottoms
What is you knew when to sell the stock market...
Dividend Gems Holds Up as the Stock Market Collapses
Dividend Gems Continues to Smash the S&P 500 Index
Where is the Stock Market Headed?
How much more will the stock market...
Stock Market and Economic Overview
Approximately three months weeks ago the U.S....
Debt Ceiling Resolution Smashes HMOs and Healthcare REITs, While Boosting other REITs
LinkedIn Engaging in Illegal Business Practices
Intraday Market Update
SPECIAL (limited-time) PROMOTION for NEW Subscribers
Dividend Gems Outperforms Again
As the market has sold off over the past month,...
Market Pulse and Earnings
The Impressive Performance of Dividend Gems
We wanted to take this opportunity to remind...
Important Notes Released for this Week - Intelligent Investor Subscribers
Does AVA Investment Analytics Have Insider Information?
Trader's Notes and Forward Catalysts
Trader's Notes and Forward Catalysts
Dividend Gems Shines As the Market Corrects
Commentary on Recent Market Activity and Global Events
Two Additional Recommendations
4-Day Gains of 30% for 2011 and 2010 Performance
A couple of days ago I showed you how a stock I...
Newsletter Stock Recommendation Soars More Than 25% in Just 3 Days
Ireland Bailout Talks Timed to Save the Global Markets
A Great Time to Buy?
Buy you ask? Yes. Not stocks, unless...
Fair Value is Here, But Watch Out Below
The stock market (the DJIA) is now very close...
America's Financial Apocalypse: What Can YOU Do as an American?
My advice is to find some people who you trust;...
America's Financial Apocalypse: A Crystal Ball for the Next Decade?
I'm getting quite bored watching the latest...
America's Financial Apocalypse
America’s Financial Apocalypse How to...
The Stress Test Scam (Part 1)
I haven't made any comments about these so...
Bank of America's Lewis: Another Scapegoat
The news of Andrew Cuomo's letter to Congress...
It's Time to Face the Facts (Part 2)
Fact #5. Most of the Lost Jobs Will Not Return....
How the Media Uses Buffet to Make Money
In the we saw how what Buffett invests in...
Tax Day Tea Parties: Americans Fooled Again.
I decided to check out a couple of these so...
The Price of Honesty
AYou might recall a recent article I wrote...
Where Do We Go From Here?
I failed to post anything about the market...
Mark-to-Market Isn't the Problem
It seems as if many have been fooled by those...
America's Financial Apocalypse: 2009 Update
Posting When It Matters I want to thank those...
An Offer the Big 3 Can't Refuse: $50 Million per Mile
Just as I was ready to pass out in my chair...
Market Guidance: Past, Present and Future
Despite the strong closing bounce off the new...
Yang + Yahoo! = Yikes!
This is the first time I’ve written...
Risks of the Proposed Bailout: Part 3
Most of us have played Blind Man’s Bluff...
Risks of the Proposed Bailout: Part 1
McCain, along with Paulson, Bernanke, Bush and...
The Death of Wall Street. Part 2
Searching for SanityWall Street’s...
Bailouts Disguised as Buyouts
Bank of America’s buyout of Merrill Lynch...
The Death of Wall Street. Part 1
Although not yet official, the verdict is on...
Fannie and Freddie
Now we come to the Fannie/Freddie bailout. This...
The Plain Truth
Rather than accept the bailout of Fannie and...
Get Ready for the Earnings Meltdown
I’m not talking about the banks or even...
Bailouts or Bull****?
With all that’s happened with the real...
Getting Ready to Short the Financials (Again)
I advise investors to use this rally in the...
Finding the Bottom in Financials
I've read and heard countless investors who...
"No Bailouts" So You Say Mr. Paulson?
Yesterday, I discussed the consequences of the...
GM Lines Up for Its Take
Shocking as it may seem, in just five years, GM...
Stay Clear of Traditional Asset Classes
Washington continues to manipulate economic...
Blast from the Past: March 2006
AThis article is from previous newsletter...