Today Michael Oliver, the man who is well known for his deadly accurate forecasts on stocks, bonds, and major markets, told King World News this is the Black Swan that will rock global markets.
February 25 (King World News) – Michael Oliver, Founder of MSA Research: “I think the next downturn in the stock market is the one that is going to cause data points to change, unemployment, all kinds of data that the Fed is looking at. We are also looking at the bond markets, not just the US Treasury market, which Secretary Yellen has said in mid-October that she was very, very concerned about the lack of liquidity in the US Treasury market. Well, the lack of liquidity is the worst thing that can happen to any market. It happened to mortgage-backed securities back in 2008 and 2009. The Fed had to come in and buy that stuff, and of course that destroyed the market because it had become one buyer. It wasn’t really a market.
The liquidity has not really retuned to the US Treasury market. So the Fed is still concerned about the lack of liquidity. That’s the biggest market in the world (laughter), almost, and you can’t have lack of liquidity. So now bonds are rolling over and yields are rising again. I think the repercussions that will have on municipalities and states — just Google New York City debt problems. The State of California has had a 30% drop in their tax revenues. Somebody is going to have to pay those bills or they are going to have to lay off their police forces. So the money is going to have to be printed. Meaning all of this focus on the Fed being tight could come unwound very quickly. And I think that is what gold…to continue listening to Michael Oliver discuss what to expect for the stock and bond markets as well as the gold, silver and mining share markets CLICK HERE OR ON THE IMAGE BELOW.
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