Gregory Mannarino: Going to be an Awful Price to Pay for Propping Up Markets

[allthingsluxury]

Trader/analyst Gregory Mannarino predicts, “We are going to face a moment when bonds are going to sell off rapidly, and no action by world central banks is going to be able to stop the bleeding. That means yields will spike very, very rapidly.

You get a sell-off in the bond market. You get a sell-off in the stock market, and as you know, money will not go to money heaven. It will go somewhere, and it will go into suppressed assets, things they have been rigging now for a decade.

How can world debt explode the way it is doing and certain assets, and I am referring to gold and silver here, not also be exploding to the upside? This is all being done to prop up the markets, and there is going to be an awful price to pay for this.”


Click here to watch this video and to read more:

https://goldsilverliberty.blogspot.com/2018/06/gregory-mannarino-going-to-be-awful.html

[jaysabi]

Trader/analyst Gregory Mannarino predicts, “We are going to face a moment when bonds are going to sell off rapidly, and no action by world central banks is going to be able to stop the bleeding. That means yields will spike very, very rapidly.

You get a sell-off in the bond market. You get a sell-off in the stock market, and as you know, money will not go to money heaven. It will go somewhere, and it will go into suppressed assets, things they have been rigging now for a decade.

How can world debt explode the way it is doing and certain assets, and I am referring to gold and silver here, not also be exploding to the upside? This is all being done to prop up the markets, and there is going to be an awful price to pay for this.”


Click here to watch this video and to read more:

https://goldsilverliberty.blogspot.com/2018/06/gregory-mannarino-going-to-be-awful.html

People like this guy have been saying this since the beginning of the last global recession. I guess eventually he'll be right; not because he's insightful but because a broken clock is eventually and momentarily right too. The economy is cyclical. It expands and contracts, but mostly it expands over the long term. If you're betting against that by buying defensive assets like gold and silver, you're on the wrong side of history. Gold and silver are historically decent hedges against inflation, but they generally don't make excellent investments over the long term compared to stocks. That's because stocks represent wealth creation in an expanding economy but gold and silver represent wealth maintenance with little growth because they're not productive assets. Wealth comes from production. Gold and silver produce nothing, they only represent the value of what was previously produced.

[dothebeats]

Never really knew who he is but he has some good points. The money coming from the bond and stock markets has to go somewhere, and cryptocurrencies are just one of the prime candidates on where the money will go. Sooner or later, world's debt will go through the roof, and gains made from bond and stock markets, rigged assets and whatnot would pour over another asset class that could potentially save these whales from an economic downward spiral. Gold and silver can be a safe haven but I think people would not like its liquidity one bit, together with the fact that you simply cannot make more gold/silver out of your pre-existing gold/silver as what's stated by the user above me.

[Hydrogen]

I think Gregory Mannarino could have a valid point. "Propping up markets" is too vague a remark to get the point across.

What Mannarino could be trying to say is: "there are many elements of markets, economies and financial systems which are broken".

Things that are broken are not being fixed. Rather they're being covered up, ignored, neglected or spun. These issues will catch up with us, eventually. One example of this could be bank bailouts which began in 2008 continuuing into 2018. Rather than solve fundamental issues in the banking industry which continue bailouts being necessary, capital is being diverted to maintain bank liquidity and keep them afloat which enables their problems rather than solving them.

Rather than critical issues like the USA having a $21 trillion dollar debt being addressed, they're being shoved under a rug where negative trends which led to that eventuality continue unabated. This applies to many aspects of finance/economy.

"If you don't deal with your problems, your problems will deal with you." Might sum it up.

[davis196]

The goverment bonds market will a face a sell-off only if there`s higher inflation,that will make holding govenment bonds unprofitable.Sooner or later,this will happen,but I think it will be after a few years.
The central banks still have some instruments to use in their arsenal,in order to lower the inflation.

[carlozharz]

I think Gregory just wanted to convey an unstable economic system, he said that for a decade, people buy bonds and sell them in the stock market, I think the analysis is vague and not transparent, but I understand what it means, I think smart in managing money is the solution.

[jeronimosuykens]

The goverment bonds market will a face a sell-off only if there`s higher inflation,that will make holding govenment bonds unprofitable.Sooner or later,this will happen,but I think it will be after a few years.
The central banks still have some instruments to use in their arsenal,in order to lower the inflation.

The central bank is of course an urgent solution for them to use. The weakness of the stock market when bonds are sold off. This will lead to many unforeseen consequences. And the solutions need to be optimized so they do not happen too fast. It really needs to stop this flow if not economically hard to recover, including banks.