Latest / Financial Survival Network / Tesla is Going Down and Why You Need to Prepare for the Greatest Depression -- Michael Markowski #5812

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Tesla is Going Down and Why You Need to Prepare for the Greatest Depression -- Michael Markowski #5812 · Financial Survival Network

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  So there's going to be a shortage of capital and we're going to have bank
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  runs. I mean, so far, what the Fed's been doing is just
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  when the dominoes are about ready to fall, they arrange the White Knight to
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  come in, whether it's JP Morgan or Wells Fargo or who never to acquire
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  the bank and they take the losses. Is that more in the future here
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  or is there going to be an end to that as well? You're listening
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  to Carrie Letts's Financial Survival Network, where you get valuable information you just can't
• 0:29
  find anywhere else to thrive in today's trying times. You need the Financial Survival
• 0:35
  Network now more than ever. Go to Financial Survival Network dot com and get
• 0:41
  your free newsletter in gift Financial Survival Network now more than ever, and welcome.
• 0:52
  This is Financial Survival Network. I'm your host, Carrie Letts. Well,
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  the Greater Depression you heard about it on the show for over a decade.
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  It got staved off in eight no nine, but perhaps there's no stopping
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  it now in twenty twenty three, twenty twenty four and on. What is
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  that going to mean for you? What is that going to mean for your
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  retirement? Where your investments. Our good friend Michael Markowski is with us now.
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  Michael, it's great to have you back on You find him at Alpha
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  tach tac k dot com. Michael, You've made some pretty amazing predictions over
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  the years. The September eight crash, the June sixteenth, June twenty sixteen
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  briggs It crash, the October to December twenty eighteen market crash, to kind
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  of go on and on, not to mention not just crashes, but the
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  January twenty two peak and the two thousand nine end of this secular bowl market.
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  So tell us what you're crystal Ball is showing you right now when based
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  on a on my most recent look at the inflation rate and the SMP five
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  hundred the SP five hunters dividend yield, I'm looking for the market to decline
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  from this level by the end of the year by thirty eight percent. Thirty
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  eight percent decline, which I should be the bottom, you know, less
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  something changes. That's what I'm looking for. Thirty eight percent decline from here,
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  and that's it's BacT that will you know. I can't tell you exactly
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  when that's going to happen. Like in my article that predicting the two thousand
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  and eight the bacco that came out in September of those seven when I predicted
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  all the brokers would collapse Lehman, bear Stearns, Merrill, Lynch, all
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  of them, and they did so. Yeah. So so I'm looking for
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  thirty eight percent decline UM and I'm b and uh and I'm looking for that
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  to cause a the US to go into that will be about a forty six
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  or seven percent decline from the peak. And you need a forty five percent
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  You need a forty five percent decline to UM, you know, to be
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  one of the ingredients for the U, for an economy to go into a
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  depression of the stock market. So yeah, I'm expecting I'm predicting that we'll
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  see that, you know, happen. Well, it's entering this thing by
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  the end of the year. That great. There any way to print their
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  way out of it? Is there anything that they can do to try to
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  mitigate this? Uh not? Within that with inflation, you know, the
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  ft is you know, did not have an inflation problem in two thousand and
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  eight. They didn't have an inflation problem in two thousand and twenty. Now
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  they've got an inflation problem. So no, it's not that they can't the
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  gap creft the money. It's it's politically we have an election year coming here,
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  twenty twenty four, and it's it's politically incorrect right now to launch more
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  stimulus. Okay, we've already launched a bunch of twenty twenty We've also we've
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  rent up the national death significantly, probably doubled it or tripled it since two
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  thousand and eight. So there's no cushion. And the problem with it is
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  the politicians. They're going to argue that it's going to raise inflation. Everybody
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  that everybody knows if you can you bring in stimulus, it's it's going to
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  maintain or increase inflation. So they've basically got new exit strategy here. There's
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  nothing that they can do. If the US goes into the Great depression,
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  greater depression as many called it, the rest of the world follows us.
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  Correct, that's right. And so you know my articles, um my article
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  about the cash flows in video which you're on that alphatack dot com talk about
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  that will link to the show notes that came up that that is, you
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  know, the cash blows for the biggest companies Amazon, Google, Facebook,
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  all of them are slowing. Um. After after having you know, a
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  momentum, you know, order at the year after year up increases, they're
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  slowing. That's one of my articles that you know, so I came out
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  and made this prediction that we'd go into a depression a year ago June of
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  twenty twenty two, and so I've had a cash flow is now operating.
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  Cash flows for the biggest companies are now increasing the probability of that happening by
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  the slowed down of the cash flows. Um. The second thing is the
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  regional bank crisis. The regional bank crisis, as UH has caused day another,
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  it's another's big problem because it's that's going to put a damper on real
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  estate, commercial real estate and construction and all of that because of the regional
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  banks or the shares are under pressure. They've had one after another. However,
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  they be rescued. People are moving their money out of regional banks and
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  into the big banks. You know, there's only forty three banks that have
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  been stress tested, and those are the biggest banks, and so you have
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  forty seven hundred that have it been So if you're a business and you have
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  a couple hundred thousand in the account to make your payroll. And you're a
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  regional bank, You're going to say, what do I do if this regional
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  bank has to go out. I can't wait for the FDIC they've come in.
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  I've got to move my money. So the point is the money's flowing
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  out of the regional banks into the big banks, and that's another big cause
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  for a depression, you know, So there's going to be a shortage of
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  capital and we're going to have bank runs. I mean, so far,
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  what the Fed's been doing is just when the dominoes are about ready to fall,
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  they arrange the white Knight to come in, whether it's JP Morgan or
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  Wells Fargo or never, to acquire the bank and they take the losses.
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  Is that more in the future here or is there going to be an end
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  to that as well? Well? Actually, JP Morgan just came out the
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  day and said that they're not they're not buying any more these any more of
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  these regional banks. They're not putting any more money in them. So that's
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  no longer an option. And you know everybody, JP Morgan is the kriminal,
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  a krem of all the banks. So you know, if Jamie Diamond's
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  not doing it. There's no pressure political pressure on anybody else to do it
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  either. So I don't see the banks or the big banks rescuing little banks
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  and uh. I think it's just going to be a continuous problem. And
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  it's a serious problem. So we're going to see a bell out. What
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  are they going to do? They can't just let the system go down,
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  even though the years to be what it's what's happening? Uh? Do they
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  just take all the deposits and they put them into fed coin and just wipe
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  out everybody else? Is that what's going to happen. I don't know about
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  fed coin, UM, but I think that you know, they're just you
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  know, help the banks are until Congress comes in and increases the fdiics.
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  You know, if that that's another issue, that's another problem. You've got
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  to get Congress to come in and increased the amount of money and the FDICS
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  accounts. So this is a serious problem, you know, the bank issue,
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  I would say the number one problem the regional banks, UM and UH.
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  And the problem is is you know, the bank runs, it's you
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  know, it's not like you know, you go back to the nineteen twenty
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  DONI there are a thirty thirty one, thirty two. You know you had
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  to go stand in line to get your money out of a bank. You
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  know, they had bank holidays where the President Roosevelt basically declared a bank holiday.
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  He said, oh, listen, we're gonna have a week. We're
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  gonna have a week where the banks are closed so that people couldn't withdraw their
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  money from the banks. Now you're in a situation where you can just you
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  know, online, go in there and move your money instantly out of your
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  banking into another bank. Yeah. Where are you gonna move it too?
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  Though, You're gonna move it to JP Morgan, You're gonna move it to
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  Wells far Ago, You're gonna move it to Bank of America. But again,
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  there's carry there's forty seven hundred banks. Okay, we can name where
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  everybody all of us bank. We can name on two hands, probably everybody
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  in your audience where they bank. I mean ninety percent of the people.
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  Maybe some people have a regional bank account. Do you have a regional bank?
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  Who do you have a big bank account with. I'm at Wells and
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  City, I'm at Wells Fargo. Okay, So my point is is that
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  they're moving the money into these big, big and it's it's really it's a
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  it's they didn't think about this and when they came up with the Dad Frank
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  and the problem because now you have a good house. You know, you
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  have Wells Fargo, you know your money safe there. You know it's safe
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  at City Bank. You know what's safe at Bank of America. You know
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  it's safe at JP board where now? Right? Yeah, But the point
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  is that the banks have been stress tests. They're stress test every year.
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  They make sure there's enough money in them. So we could go into a
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  situation where just about you know, where the government was a highly regulated banking
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  industry with a few banks is where it's probably where it's going to go by
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  the end of the decade. Yeah, a lot of the banks will just
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  disappear. I'm going to get there, though, what how are we going
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  to get there? It's not going to be pretty, is it. No,
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  it's not. It's going to be very very it's going to be very
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  difficult and very volatile, extremely volatile. Yeah. So do we eventually get
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  deflation here? I mean what we're seeing is M two eroding, right,
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  Yeah, as it's going down that's the measure of the of the money in
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  the circulation and banks and all that. Well, I definitely, well,
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  I definitely think we're going to see deflation. I've did, you know,
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  you know, I to come up with my projections, my thirty eight percent
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  declining for the SP five hundreds based upon the SP five hundreds, my research
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  of it a dating back eighteen seventy one, and it's diving yields under inflict
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  during inflation every periods. And in that, in that whole research I did,
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  I also found all the periods where there was deflation for an extended period
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  number extended number of years. So yeah, I believe that we're going The
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  FED has lost control and because of the mistakes they've made in twenty one to
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  twenty twenty two that you're on my website. Okay, there's an article about
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  that Fed's mistakes too. They've made true policy errors. Um you know they're
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  not they've made they made the mistakes and they've lost control and in the everybody's
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  ill lose faith them. Now, Okay, so you know, when this
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  thing goes into a depression that wasn't supposed to happen, I don't know what's
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  going to happen to the FED, you know, because they were supposed to
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  be the stap of the stop gap, and they made two serious mistakes,
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  and so we go back to a highly volatile period of rising prices followed by
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  de flight declining prices. You know. I mean they're back in the late
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  eighteen hundreds, early nineteen one. Ord you have five years of deflating prices
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  followed by five years of inflating prices. It was very difficult to do business,
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  very difficult back then and will become very difficult in the future. All
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  right, So what is you as an individual investor? What are you supposed
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  to do in the face of what we're up against here? Besides moving your
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  money to Wills Fargo or jp Borg in Chase Well investors really need So this
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  is a big problem. Investors need to change their mindset to First of all,
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  buy and hold. Forget about it, okay, I mean buy and
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  hold is works at burin secular bull markets, which had ended in January of
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  twenty twenty two, assorted in two thousand at night, and in a secular
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  bull starts at the bottom of a secular bearing. You just buy and hold,
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  and it's like autopilot, like we were talking about the Tesla. Okay,
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  So what happens. You've got to go to you have to switch gears,
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  and you have to get out of the buy of old mentality. You
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  have to look for a return of capital, not return on capital, because
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  prices are going to go down. Thirty eight percent is when I'm looking for
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  a decline for the SP five plunders. So you're going to be able to
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  buy thirty eight percent lower. Okay. So you want to be in cash
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  when it's saying hits bottom, and when hits bottom, while be on your
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  show and I'll ring the bell. Okay. But the point is you want
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  to be in cash, and you absolutely want your money in long short hedge
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  funds. Okay, because if you put your money in a long short hedge
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  fund and from nineteen twenty nine to nineteen thirty two that basically bought the dips
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  and sold the peaks short. Okay, from nine twenty nineteen thirty two,
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  you made over six hundred percent on your money. If you've bought and held,
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  you lost eighty five percent. Okay. Same thing happened with the NASDAC
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  and you know two thousand to two thousand and three. Okay, if you
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  if you'd been in, if you had if you had traded the market short,
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  I mean the NASDAC went down seventy eight percent during that time period in
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  two thousand and two thousand and two. And then during that time period you've
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  made over five hundred percent by you know, by buying the dips and selling
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  the peaks. So you want to have money in a hedge fund, okay
• 14:54
  that goes long and short the market. And if you're if you're missing out,
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  if you don't have your money, and that and that's what we do
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  at Alpha Attack. We have that we have algorithms. The same algorithms that
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  I use to predict the peaks I mean the peaks and the troughs for them
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  for the market can be used to trade the market. So they have a
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  dual purpose. All right, So that's one thing you could do. You
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  stay cash heavy. Well, you put you know, especially older people,
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  people over fifty fifty five years old, they should absolutely put a significant portion
• 15:28
  of their portfolios into you know, government bonds, two year government bonds and
• 15:37
  of a government that has a double A plus or better credit rating, which
• 15:39
  would include the US. What's your land, Finland, suite most kind of
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  countries, you know, because you want to be in it. You want
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  to have your money in something at a government bond in which the government has
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  the ability to leave the attacks against its citizens to pay off its debts,
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  to pay off its debts. Like in back in nineteen twenty nine, after
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  the twenty nine thirty two tobacco the tax rates in the US or an income
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  tax rates went to as high as seventy seventy some one percent and stayed there
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  for years. So that was at that enabled the US to always pay So
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  if you're in a country, if you're in an Eastern Bloc country or a
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  South American country that can't collect their taxes and you've got the bonds, you're
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  in trouble. You know, if you don't have a taxpayers are willing to
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  accept the higher taxes and pay them. So that's why you want only those
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  countries that have double A plus bond rates. And you want two year bonds
• 16:37
  because you don't have interest rate risk. So if interest rates skyrocket in a
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  two year bond, you'll be okay. Right, So two year bonds or
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  makes sense. So now I see some banks are paying four and a half
• 16:49
  percent interest do you take it. I'd rather have the well again because of
• 16:55
  the banks. You understand, the banks are all trying to get more deposit
• 17:00
  money, so you know, the regional banks will give you a higher deposit
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  rate, but I think you're getting their their rates are comparable to what they
• 17:07
  to your treasury bills. So I think you just you you either buy your
• 17:12
  your treasuries from the bank where you buy it from your brokerage firm, your
• 17:17
  online broker. I think you're much smarter to be in treasuries than banks than
• 17:22
  bank deposits. So what about money market funds that invest in treasure Money markets
• 17:27
  are okay as long as they're invested in treasuries, but you're not going to
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  get the higher yield on those generally, right, gotcha? Yeah, So
• 17:37
  better off going direct to the treasury yourself. I mean, I think look,
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  I think it's important, you know, because of the volatility of the
• 17:45
  markets. If someone puts their money in a money market fund, there's that
• 17:48
  tendency to jump in when the market sells off big okay, and put your
• 17:55
  money back in, and then you get killed okay, because it's going to
• 17:59
  continue to write it down. So if you're disciplined to say, you know
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  what, the next two years could be tough, could be rough. Let
• 18:06
  me be defensive, but a good percentage of my money in a two year
• 18:10
  government and a note, you're you're you know you're gonna. It's a decision
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  you're making. You know that's more defensive. Okay, you're gonna, you're
• 18:18
  You're not gonna have a tendency to turn around and sell that note three months
• 18:22
  later. You need to be conscienties. That what investors have to be.
• 18:26
  They have to be conscienties and discipline, discipline, conscientious and cautious. Right,
• 18:32
  if you look these hedge funds, we're looking at big returns. We're
• 18:36
  looking at you for three, four or five percent returns over the next couple
• 18:40
  of years. If you're if you're a long short hedge fund, that's what
• 18:44
  kind of returns you're looking for. So if you put twenty percent of your
• 18:47
  money into that thirty percent of your money and that seventy percent of that seventy
• 18:51
  percent of your money into notes, and I also recommend venture capital deals,
• 18:56
  but you know, we can give invent a minute. But I've seen the
• 18:59
  hedge fund should been able you to generate a higher return in these volatile markets,
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  and you would have if you were fully invested, one hundred percent fully
• 19:07
  invested in the stock market. All right, so you have to embrace the
• 19:11
  volatility. Care everybody has to say, Hey, I've never done this before,
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  but I need to embrace the volatility. I need to put a portion
• 19:18
  of my assets and a long short hedge fund. Okay, because you're those
• 19:22
  who do are going to It's shown over time you make you make a hell
• 19:26
  of a lot of money, right Okay, Well interesting, So hey,
• 19:32
  what can people get when they go to your site Alpha tech dot com Michael,
• 19:36
  Well, they can get sign up for our I mean, you could
• 19:40
  get access to hedge funds, investment advisors that have access to these hedge funds.
• 19:45
  And I have a weekly session every Saturday morning that I have that for
• 19:51
  my uh you know you can that's for you. So we go over these
• 19:55
  things every week on a Saturday morning at eleven am. You can sign up
• 19:57
  for that. You could sign up for our alph attack intel alerts, another
• 20:03
  thing can sign up for. So there's plenty of things to sign up for
• 20:06
  on the site. And there's also educational information that's we have an information about
• 20:11
  all that you know secular bear markets, which I highly recommend every investor view
• 20:15
  the videos about secular bear markets because the market is secular. We could have
• 20:21
  a whole show next time just on secular, on secular and excliting that we
• 20:26
  could I could get a whole interview on that. Yeah, something that many
• 20:30
  of you out there weren't even alive for the last real secular bear market.
• 20:37
  Yeah. Really in the seventies when the nifty fifty crashed and burned, right
• 20:42
  right, you had those one decision stocks they called them. You bought Kodak,
• 20:48
  you bought both rights IBM, and you held them for life and you
• 20:52
  could retire wealthy. Right, that's right. Let's see how that worked out.
• 20:56
  Huh Yeah, all right, Well, interesting times ahead. Ache.
• 21:00
  We'll have a link to Michael's site on Financial Survival Network dot com and the
• 21:07
  show notes this interview while you're there, to make sure you sign up for
• 21:10
  your free newsletter. Really appreciate you coming on, Michael. If you have
• 21:12
  a question for Michael myself, shoot me an email al Atcarrey Lutz dot com.
• 21:18
  Write your comments on the YouTube channel below, and we will address some
• 21:22
  of them. Michael, thanks for stopping by. We'll talk to you soon.
• 21:26
  Okay, thanks Carry, thanks for listening to Carrie Lets's Financial Survival Network,
• 21:30
  your solution to today's trying times. For the latest, go to Financial
• 21:36
  Survival Network dot com. Financial Survival Network now more than ever,