In his latest video Mike Maloney is warning that the next financial crisis will be much worse than we saw in the credit crunch of 2007-2008 (video below).
In the video Mike Maloney argues that stocks, bonds and real estate could all be in the biggest bubbles of all time.
In the past, he says economies have usually only had one aspect to deal with at any one time, but with all these reach crisis point together in a perfect storm there is no ammunition left in the central bankers’ armouries to deal with it. In fact the action they have taken thus far to stave off the worst effects of the last financial crisis may actually make things worse in the next one.
“Complacency is at a maximum” he says with pricing in of risk at a minimum and “we are leveraged out” to where margin debt as a percentage of the economy is at an all time high, which he says is dangerous. This is because any crash will be accelerated by the large number of resulting margin calls.