Top economist warns of Wall Street crash, but cryptos could benefit
Wall Street has been going strong for a little too long. David Stockman, former top economic advisor to U.S. President Ronald Reagan, warns that a recession could be coming any time now, and Wall Street will suffer badly when it does. Investors will need to look for more secure options, and cryptocurrency is a solid bet.
In a recent interview with Fox Business, Stockman spelled out how bad the situation currently is.
He likens the current situation to the Black Monday Wall Street crash of 1987, when the markets fell by over 22% in a single day. He blames that crash for government deficit spending at the time, and feels it’s going to happen again any day now, due to changes by the Federal Reserve System (The Fed for short). “My point is; it’s finally catching up with us. We’ve gotten by with this for 30 years because the Fed has been monetizing the debt,” Stockman said.
Neil Caputo, anchor on Fox Business, pointed out that the debt has been bad for quite some time now, why would anything change suddenly? To that, Stockman replies:
“It’s not the 22 trillion debt we have now, it’s that there’s 40 trillion baked into the cake over the next 10 years. In other words, if you take what Trump has done, on top of the bad deficit he already inherited, you’re going to be in multi-trillion dollar deficits year after year, and we’re going to have a recession.”
What advice does Stockman have for investors? “I think you get out of the market. The bond market, the stock market. Put your money in cash,” he said.
That’s where the tie to cryptocurrency comes in. Stockman doesn’t specifically encourage crypto investment, but for smart investors, that is clearly the next step. If Wall Street crashes, as he predicts it will, rather than investing in stagnant fiat cash, as he recommends, investing in cryptocurrency makes much more sense, as it is not tied to the failures of the financial policies of the United States, and has a clear future use as the world’s new money.
Assuming Stockman is correct, we’ll start seeing the signs sooner than later. Companies will struggle with higher interest rates, and Wall Street will start a fast decline. When those days come, expect a lot of the money taken out of the stock market to go into the crypto market.
Note: Tokens on the Bitcoin Core (SegWit) chain are referenced as SegWitCoin BTC coins. Altcoins, which value privacy, anonymity, and distance from government intervention, are referenced as dark coins.
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