Gregory Mannarino, the founder of TradersChoice.net joined USA Watchdog’s Greg Hunter for an interview. While speaking with Hunter, Mannarino said that the Federal Reserve isn’t losing control of the market, it has already lost control and we are in some very serious financial trouble.
Mannarino said the markets are out of control and it’s the Fed’s fault. Not that we didn’t know that, but the whole economy is unraveling and not many seem to have noticed. Mannarino, who is a professional trader says the new Fed Head, Jerome Powell, caused the market to sell off last week, not president Donald Trump’s tariff talk. Powell blurted out in Congressional testimony that the “U.S. is not on a sustainable fiscal path.”
“They have already lost control. If they were in control, would they still be buying bonds like they are? Would they still be trying to ‘get it right’? They cannot unwind this in a normal way. They have created a system of bubbles, and they are well aware of this. These things tend to collapse very violently when they do. If the Federal Reserve or any of these central banks were in control, do you think we would be in the situation we are in right now? Absolutely not. All they have done is liquefy the world with debt and buy everything they can to keep this propped up. This is not control. This is some kind of a Frankenstein they have created by trying to prop everything up.”
“The stock market is in a bubble that is being suspended on the back of the debt bubble. So when the debt bubble pops, every other subsequent bubble connected to it is gonna burst along with it…forget the stock market…it’s the bond market that tells the story,” Mannarino warns.
Mannarino says that the whole system is fake, and he and Hunter say it’s definitely possible that central banks are giving each other money to buy their own bonds. If that’s happening, and many market analysts firmly believe that it is then the Fed is in desperation mode.
“This [the markets] is a corpse here, that’s on life support. And that’s all it is. So, there’s going to be a terrible moment or reckoning. Inflation? Forget about it. Of course, there’s going to be massive inflation. They can’t stop it…we’re in a lot of trouble here…let’s say we start getting surreal inflation, and they’re going to start hiking super fast. Well, what’s that going to do? BAM! There goes your debt bubble and then we’re done. Back to the stone age. Stock market down 6,000 will probably seem like a dream come true because it might even go lower than that.”
“People are going to lose everything; worse than last time if they’re not ready for what’s coming. That means watching the bond market….there’s gonna be an unbelievable price to pay for this at some point.”