Today a former associate of George Soros spoke with King World News about what caused the 1,000+ point freefall in the stock market today.
Victor Sperandeo oversees over $3 billion, has been in the business 45 years, and has worked with famous individuals such as Leon Cooperman and George Soros. Below is what Sperandeo had to say.
The Markets Are Crashing
Victor Sperandeo: “There’s too much control by central planners. Meaning, all of the markets are centrally planned — they are controlled by governments. So right now the Fed can’t get out of the way without crashing the market. The problem is that the markets are crashing because the already massive worldwide debt will become even more monstrous in the future…
“That’s What Caused The Freefall In The Stock Market”
Let’s say that in the not-too-distant future we are talking about US debt of $35 trillion at 6 percent interest. That’s roughly $2 trillion a year in interest payments alone just to service the debt. Eric, do you see how nuts this is going to get? It simply can’t continue. That’s what caused this freefall in the stock market. Right now some will call this a ‘correction’ until we get confirmation that it’s more than a ‘correction.’ My view is that the recent highs in the stock market will remain in place until the next generation…
Gold Will Benefit From The Chaos
Meanwhile, gold has been holding its own, even though commodities have been crushed. The only reason that gold isn’t up $100 or $200 dollars is because inflation hasn’t shown up on the screen yet. But the price of gold will benefit from chaos, Eric, and there is still a lot more chaos yet to come. The reason for this is because wages, which recently showed a 2.9 percent increase, which was 50 percent higher than the previous 9 years, triggered the initial panic selloff in bonds. And the strength of the economy is going to force the Fed to raise rates further. So the debt plus the future increase in interest rates are what caused stocks to crater over the past week.”
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