Capital Markets Financials Commentary
In 2008 the central banks bought everything. All the market wanted to do was correct to fair value. That’s their purpose of the market after all. When central banks artificially suppress rates. Where does cash go? Equity markets because investors are looking for yield.
The bond market is where every market derives value. Buying debt re-inflated prices and has created a monster. There is no price discovery mechanism. That includes gold and silver. There are 500 people who believe they own the same ounce. This is an opportunity.
Become your own bank, bet against the debt.
Markets always correct to fair value and the next crisis is going to be very big.
Why does Greg love silver? He believes it is the most undervalued under asset of all time.
He believes we are going to have a rapid sell off in the bond market and the rates are going to skyrocket. Mannarino uses Goldman Sachs and former Fed Chairman Greenspan who have both said the same. This is going to put pressure on stocks and money is going to look for somewhere else. Down the line this is going to occur.
Mannarino believes that debt is not sustainable. The European debt crisis has never been fixed. Deustche bank is on the endangered species. All the banks are connected and they are all going to face the same issues. Lot of opportunity to take advantage of the market. The market could unwind rapidly.