"The bailout buffet won’t end with Fannie and Freddie. There’s a lot more where that came from because the “Fed’s food court” remains open, as does that of the U.S. Treasury. In fact, the autos are in the process of being bailed out with $50 billion in ‘loans.’ I expect the airlines to also receive some form of a bailout as well."
In September 11, 2008, he predicted the U.S. would experience the worst recession in decades.
This article was published the next day after the deal was announced.
Note at the end of this article, he also warned that Washington Mutual would be the next bank to be taken over in his September 15, 2008 article...
"So which major bank will be next to go under? Whatever bank that ends up being, Citigroup is certainly in no shape to help out. Even with the Fed’s printing presses they are going to struggle to survive. Most likely, Citi will sell off a few of its businesses before it’s all over. So the question is - which member of the banking cartel will be asked to step in and buy Washington Mutual."
"Maybe once the FDIC runs out of cash they will start to see the light. On second thought I doubt it. Stay tuned, because as I have continued to state with confidence the devastation is far from over. Oh, and one more thing. If you have your money in Washington Mutual, you might consider taking it out as I have."
Stathis reiterated this prediction here.
Do you know of anyone who warned about the possibility of Dow 6000 just months before the collapse began, who also told the public to start buying at the bottom??
This shows Stathis is not an extremist, nor is he a doom and gloomer with a sales pitch, unlike the guys you see and read in the financial media.
Stathis knows WHEN TO SHIFT GEARS because he is a REAL Analyst and strategist, NOT A SALESMAN like the clowns plastered all over the media.
Stathis is the real deal and his track record proves it.
Already, with just these few forecasts, you aren't likely to find anyone else who can match his track record.
But let's continue with more.
Here are just a few predictions made by Mike Stathis in this book.
In this book, Mike...
(1) Predicted the collapse of the commodities bubble in 2008/2009 and told readers that would be the time to buy - Chapter 14
(2) Warned that the credit rating agencies were passing AAA ratings to risky mortgage debt – p. 219
(3) Warned of the lack of adequate regulatory authority over the MBS market positioned it for a massive collapse – p. 222
(4) Predicted a mortgage-related derivatives meltdown resulting in losses in the trillions of dollars – p. 221
(5) Predicted the banks would suffer due to the implosion of the MBS market – p. 223
(6) Warned that once the MBS market collapsed it would lead to a massive sell-off in global stock markets - p. 223
(7) Advised readers to short LEND, FRE, NFI, FMN, FRE, banks and homebuilders (Cashing in on the Real Estate Bubble)- Chapter 12
(8) Predicted that Fannie and Freddie would be bailed out by taxpayers – p. 221
(9) Predicted real estate prices would decline by 30%-35% on average (50-60% in certain regions) – p. 223
"I would estimate at its bottom, the deflation of the housing bubble will cause a 35 percent correction for the average home. And in “hot spots” such as Las Vegas, Northern and Southern California, and South Florida, home prices could plummet by 50 to 60 percent of their peak values." (Cashing in on the Real Estate Bubble) --pp. 67-8
(10) Predicted Dow 6500 - Chapter 16, pp. 336-342
(11) Warned that the collapse of the real estate bubble and stock market would lead to the “Poor Effect” – p. 201
(12) Provided exhaustive evidence of a massive real estate bubble ready to burst – Chapter 10 – the most exhaustive and insightful analysis anywhere
(13) Warned that GM and GE would also collapse due to the real estate implosion – p. 223
(14) Warned of the implosion of the ABS market – p. 223
(15) Presented irrefutable evidence there would be a depression – Entire Book
(16) Predicted there would be a "New Deal" – p. 346
(17) Warned about the entitlements tsunami that would lead to massive tax hikes -- Chapter 11
(18) Detailed "free trade" as America's #1 chronic macroeconomic problem - numerous chapters
(19) Addressed healthcare as the second biggest long-term problem faced by America and detailed the problems - Chapter 7
(20) Recommended gold and silver - Chapter 17
(21) Advised investors to trade the volatility of gold rather than buy and hold – p. 381
(22) Advised investors to invest in oil trusts as a way to deal with the high volatility of oil - Chapters 17 and 18
(23) Recommended going to cash and waiting for the disaster - Chapter 17
(24) Mentioned the possibility that the Fed would intentionally create massive inflation in order to pay off the huge national debt – p. 362
(25) Provided a generic asset allocation for conservative, moderate and aggressive investors – in each case, Cash was the #1 asset (so they would be able to buy after the market crashed). p. 383
Other assets recommended were oil trusts, gold, silver, Chinese funds (note my warning that China’s economy would correct, indicating a time to buy below), healthcare, TIPS, Dollar hedge with the euro – p. 383
(26) Predicted an inflationary depression followed by brief periods of deflation if things got really bad (we experienced deflation during Q4, 2008) -- Chapters 16 and 17
(27) Discussed effective ways to manage risk – pp. 376-385
(28) Detailed how the government manipulates economic data (GDP, inflation, unemployment) and WHY - Chapter 11
(29) Explained how gold was a hedge against deflation, not inflation – pp. 360-362 -- he followed up on this in detail to help the sheep who are being taken by the gold bugs despite the fact that he forecast gold to soar to above $1400 and perhaps $2000 in this book.
(30) Explained how America today (2006) shared many similarities to pre-depression America – Chapter 16, pp. 343-346
(31) Warned of the possibility of China dumping U.S. Treasuries or using this threat for economic (such as unfair trade and currency manipulation) and political leverage pp. 308-309, 312
(32) Explained how corporate America is destroying the middle class – Chapter 12, pp. 322-325, 257-262
(33) Detailed America’s two-decade period of declining living standards – pp. 243-248
(34) Explained how the SEC permits legalized insider trading via corporate executives and corporations – pp. 255-256
(35) Proved how the economy under Bush was a disaster and was set to implode – Chapter 15
(36) Explained how the SEC is useless and serves as a partner in crime with Wall Street – Chapter 12
(37) Explained how the dollar is backed by oil and how the Saudis have a huge amount of control of the fate of the U.S. economy, pp. 310-311
(38) Predicted that most baby boomers would never be able to retire due to the stock market collapse – Chapters 8 and 13
(39) Exposed the myths and discussed the real problems with Social Security – increased dependence and loss of buying power – Chapter 8
(40) Exposed the fraud behind the for-profit college system
(41) Detailed America's wealth and income disparity (the media only started talking about this in 2010)
Has there ever been another investment book like this?
Probably not.
You will not find any other professional even attempt to forecast and analyze so many things.
The amazing thing is that Stathis’ success rate is so high.
Ask yourself what the perpetual doomer and gold pumper clowns have to say.
What did Faber, Schiff, Roubini, Prechter, Turk and the rest of the EXTREMIST perpetual doomers say when the Dow was making lows to the 6400 level?
They insisted it would keep going lower. They told you to sell!
And when the stock market soared month after month in 2009, they KEPT TELLING YOU TO STAY OUT.
Prechter even told his clients to SHORT the stock market using 200% leverage by November 2009!!
These guys are extremists who are only geared to sell you fear and greed.
The real pros know when to reverse directions.
The real pros also know when you should just stay out of the market altogether.
They also know that you need to focus on risk management instead of a buy-and-hold strategy like others who have been labeled experts by the financial media.
Have a look at what Stathis has to say about some of these so-called experts.
They don't dare call him out because they know well they know he has no agendas, and his insights are well beyond theirs.
Stathis does research and analysis for a living. He doesn't spend his time marketing to sheep. Never forget that.
The so-called experts spend their entire day blogging or being interviewed on TV.
Real experts don't do that; not if they want to form an accurate track record. They are either doing research, or advising clients.
The facts are clear. You will NEVER find a real expert on TV.
If you did, why can't you make money following what they say? Think about it.
The financial media gets paid (via selling commercials) by the financial industry, so whose best interests do you think the media represents?
Yours or those of the financial industry? WAKE UP.
These guys you see on TV are marketers not investment experts. That is why they have sheep (viewers) as customers.
Stathis advises FINANCIAL INSTITUTIONS.
That means he gets paid to be right.
Salesmen get paid regardless because they market to the sheep.
November 2005 Warning PLUS Book Excerpts
Mike Stathis is prepared to go up against ANY of the media's "experts" who wish to challenge his track record or his views (as long as the venue is neutral, the host/moderator is neutral, it is a live broadcast and each is given equal time).
Don't expect to see such a showdown.
Weaker opponents always know it's best to retreat rather than confront a much stronger opponent.
Don't be fooled by America's propaganda machine.
RESEARCH the track records of these guys and you will see for yourself.
STOP BEING TAKEN FOR A FOOL.
Tune out the media before you lose even more money.
Align yourself with the world's leading expert on the economic collapse.
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