- Max Keiser, a noted anti-Wall Street financial analyst and bitcoin bull, says the market will crash in 2020. And it’ll be the Fed’s fault.
- He also predicts JP Morgan CEO Jamie Dimon will eventually hound the Federal Reserve for rate cuts so he can borrow more money to buy bitcoin.
- While the picture he paints is extreme, the signs he points to are troubling even respected Wall Street economists. Here’s why 2008 was just a preview.
In an episode of the RT financial broadcast “The Keiser Report” Thursday, Max Keiser said a financial market crash is near. Meanwhile, S&P 500 executives will be hiding out in the hills with their ill-gotten gains, waiting for it to blow over.
A Blistering Market Crash in 2020
Above all, Kaiser points to the Federal Reserve’s ever growing balance sheet before and since the 2008 financial crisis as the cause of the looming market crash:
It’s a recurring theme: Everything can be solved with money printing.
The end result is a drastic misallocation of capital resources to unproductive risk assets like WeWork shares and a record high consumer credit bubble. When the economy adjusts to the actual value of these malinvestments, there’s a blistering market crash.
Keiser says the insanity of monetary stimulus is evident in the coronavirus rate cut.
These policymakers have grown accustomed to the idea that every single problem can be solved with money printing. Why can’t we solve the coronavirus with money printing? The market now is starting to scratch its head a little bit and say wait a minute, that’s insane.
But the acknowledgement will come too late to save trillions in destroyed capital.
So therefore valuations look like they’re going to be marked down. Already in correction territory in these markets down ten percent. Are we going to get to bear market valuations? Down 20%? Probably. I think the likelihood is extremely high.
Over the past couple…