4 Billionaires are Extremely Worried that America’s Next Big Financial Crisis is Coming Soon

[jackprince]

http://thecrux.com/dyncontent/psibo...cid=MKT015071&eid=MKT035893&snaid=&step=start

This story is developing quickly.

If you are worried about the possibility of another large scale U.S. financial crisis, you are not alone.

In recent months, four super-successful billionaires have gone on record with warnings that we are now living in perilous financial times.

Andy Redleaf, for example, is a successful hedge fund manager, who accurately predicted the last major financial panic in America.

Just before the last big financial crisis in America, Redleaf prophetically wrote to his clients in December 2006 that: “Sometime in the next 12 to 18 months, there is going to be a panic in credit markets.”

Redleaf is now worried again. He recently told CNBC: “I think it is a truly scary time.”

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A few months earlier, billionaire Sam Zell told CNBC something similar:

“People have no place else to put their money, and the stock market is getting more than its share. It’s very likely that something has to give here. I don’t remember any time in my career where there have been as many wildcards floating out there…”

Just before that, billionaire Carl Icahn told the same network he’s “very nervous about U.S. equity markets… you have to worry about the excessive printing of money!”

Then, just a few weeks ago, billionaire money manager Crispin Odey went on record with perhaps the strongest warning yet about the global economy. He said:

“Everything points to it being a bubble. You can never know the height of a bubble, but by the time it gets to here, you haven’t got much time.”

So, what should you do? How should you prepare and adjust your portfolio?

Well, one multimillionaire businessman agrees with these billionaires, and believes he has the answer…

Porter Stansberry is the founder of Stansberry Research, one of the largest independent financial research firms in America.

In recent years, he accurately predicted the collapse of Fannie Mae, Freddie Mac, and General Motors, just to name a few.

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Today, Stansberry says the next big financial panic in America will be even bigger than what we experienced in 2007-2008.

In fact, he says this looming crisis will threaten your way of life, even if you don’t have any money in the markets.

This collapse, says Stansberry, will change everything about our normal way of life: where you vacation… where you send your kids or grandkids to school… how and where you shop… the way you protect your family and home.

I strongly encourage you to check out Mr. Stansberry’s recent write-up on this situation, which explains exactly what is going on, what will happen next, and the simple steps you can take to prepare.

How much of the apprehension is true? How much prepared India is for next recession? Has Mr.Rajan diversified our forex reserve with something other than US Dollar or Euro? Can someone with proper knowledge of economy throw some light?

 

[Abhijat]

@jackprince , Mr. Rajan , had already predicted some time before about it, :

http://www.thehindu.com/business/Ec...er-global-financial-crisis/article6292494.ece


Raghuraman Rajan
TOPICS
economy, business and finance
economy (general)


Reserve Bank of India Governor Raghuram Rajan has warned that the world economy could be heading towards a crash much like the Great Depression of the 1930s as advanced countries in a bid to pull out of the global downturn are working at cross purposes.

He advocated greater coordination between the central banks of these countries so as to avert a replay of the 2008 financial crisis that the collapse of Wall Street firm Lehman Brothers had triggered and from which the global economy is yet to fully recover.

As was the case in the 1930s, the lack of coordination between central banks across the world is producing spillovers that may be difficult to control and could plunge the world’s financial system into another crisis, Dr. Rajan said in an interview to the Central Banking Journal on Wednesday.

Dr. Rajan, a former chief economist of the International Monetary Fund, had famously predicted the 2008 global meltdown.

“We are taking a greater chance of having another crash at a time when the world is less capable of bearing the cost,” he told the journal. Whereas countries had previously competed with one another to devalue their currencies to spur economic recovery, the favoured tool now is monetary easing, he said. One symptom of the imbalances in the world’s financial market is the over valuation of the euro in contrast to the Euro zone’s economic standing, he said.

The European Central Bank’s “very, very accommodative stance” is getting blunted by the ultra-loose monetary policies being pursued by other central banks, including the Federal Reserve, the Bank of Japan and the Bank of England.

Dr. Rajan also warned that there could be sudden build ups of risk in the global financial system that might not be possible for economists to predict in time.

He cautioned of a repeat of the major market volatility seen in the aftermath of the Lehman collapse if investors who are chasing higher returns made possible by the loose monetary policies all exit their investments and positions at the same time.

To safeguard against such an eventuality, all central banks must unwind their monetary policies in a coordinated fashion, Dr. Rajan recommended.

(With inputs from Agencies)

 

[I_PLAY_BAD]

It will take at least five back to back recessions for America, or even the whole world to crumble.

 

[Kathryn Ostrow]

I agree with the idea, as the big financial crisis is coming. Economy is based on circulation of money and as the down-bottom class is going through crisis. And according to Micheal Ohan, it will disturb the lower-middle class soon.