by Nick Giambruno
Casey Research
As early as January 2017, I said to expect “a stock market collapse at least as severe as 1929 or 2008.” And, “I think there’s a very high chance of a stock market crash of historic proportions before the end of Trump’s first term.”
It wasn’t a lucky wild guess, but the conclusion I came to after putting together the different pieces to see the big picture, which is what we do at Crisis Investing.
As you may remember, the Federal Reserve responded to the 2008 financial crisis with unprecedented amounts of easy money. It claimed this would “stimulate the economy.”
Just think of the $3.7 trillion in money-printing programs, euphemistically called quantitative easing (QE) 1, 2, and 3. That money didn’t come from someone’s savings. The Fed simply created it out of thin air.