A contrarian economist predicts a US market crash should the US Federal Reserve raise interest rates this September
We are living in historic times and after 80 years, will witness another crisis that would make many investors nervous. They might have to face sleepless nights moving forward. I see financial bloodbath to continue till 2020. What is the credibility of Janet Yellen (Federal Reserve Chairman) – the ‘Bubble Woman’?
I asked my Nobel Laureate professor, the late Gary Becker at University of Chicago, Booth School of Business in January 2014. He replied: “She would succumb to market pressure and create panic in the market like what happened in 1937.”
It’s so true. The recent statement of Janet saying that she would increase the interest rates by September is a clear testament to the prediction made by Prof Becker.
Since July/August 2014, I have been sharing that the Fed won’t increase the interest rates in June or September this year as the US economic recovery is still fragile and uncertain. Janet is sending the wrong signals to the market players, financial institutions and decision makers. She is manipulating all the markets and asset classes globally. A strong dollar is bad for the US economy. I have stayed ahead of the mainstream media in my analysis in understanding the global financial markets.