This is What Will Crash the Market and the Economy!

ELK GROVE, Calif. - Dec. 9, 2014 - PRLog -- This probably sounds more of a bold statement than it really is. If I were to tell you the exact day or the specific single cause that would be a bold statement and would probably turn out to be wrong.

The market and the economy will crash. If we look at charts, if we look at fundamentals, if we look at what caused the tossing and turning just a few years ago we intuitively can be sure this will happen again. What I will do in the next few sentences is raise an alarm without being an alarmist.

The last two weeks of October gave us a glimpse of what the market was once accustomed to, volatility. The market dropped about a thousand points and then rose about a thousand points. There have been wide swings in treasury rates and the plummet in oil that has shocked many, along with the drops in gold have many grabbing the edge of their seats.

You have probably heard financial sales people screaming about inflation and unemployment as a reason to buy annuities. Along with their screaming about a demographic shift that will send 10,000 baby boomers into retirement a day for years will be a massive drain on the stock market.

The question is, "Does this even matter and will it affect me in my lifetime?"

At an Investment Conference in New Orleans Alan Greenspan said, "Promises made by the government cannot be kept. Mathematically, it's impossible."

All of these issues are building, building to a size much larger than they were in 2007. I do not know when an economic catastrophe will occur but I know that it will and that it will be global. One thing that is important to note is that people have screamed of another 2007/2008 crash since 2007/2008 and this has caused many to become immune to the warnings.

Especially since these issues have been delayed and look that they will be delayed for possibly a few more years. The reason these issues have not brought us down is because of QE.

Remember how the world was up in arms because AIG's Investment Bank (not Insurance Company) needed to borrow $50 billion dollars? QE at it's level was printing $50 billion dollars a month. But more important than that is where the QE funds went, they went to foreign commercial banks to recapitalize them.

$700 billion dollars of tax payer money went to many European banks and in the most recent European bank stress test 24 failed. Even the European Central Bank chair Mario Draghi has said several times that no amount of money will recapitalize most of Europe's banks.

This is all printed money, debt that has been pushed forward. The Federal Reserve balance sheet went from $600 billion to $4.4 trillion dollars. If interest rates rise 3% on the 10 year treasury the Federal Reserve would lose 30% of the value of their bond portfolio. The scary part would be their solution of printing more money.

But if QE is ending in the United States why is the stock market pushing into new all time high territory? Europe began its own stimulus in October and Japan increased its own easing to $3 trillion per year with the Central Bank of Japan buying 100% of all government bonds in Japan.

It's like owing money on one credit card transferring the full balance to another credit card and calling ones self debt free.

All of this stimulus is increasing the major stock market indexes and putting off a financial reconciliation. However, the major economies in the world are now frightened of Deflation rather than inflation. The financial tv shows and articles have not caught up to this reality yet but they will eventually.

Japan has been sunk in deflation for 20 years, South Africa is seeing it's prices declining, and Europe is deep in the fight against deflation. The European Central Bank is essentially charging banks .10% to keep funds there trying to encourage them to lend money but the banks are paying the fee rather than risk lending to those who could soon default.

Between the Untied States and China growth rates are stagnant or declining with the us at about 2% and China continuing to decline. China has the largest housing bubble the world has ever seen and is nearly ready to burst. They even build fake cities to keep growth happening and the strategy is running out.

The global market and economy is in danger, danger can be put off but still remains a danger. If the market loses 40, 50, or 70% would you be affected? If you would reach out to us and we will help you.



Matt Golab was recruited to write a chapter in Tom Hopkins recent book, Victory which became a National Best Seller. Matt also received the Editors Choice Award for his contribution to Victory, not every contributor is selected for this high honor.

Matt is an authority on creating innovative tax and investment solutions to help his clients succeed in their retirement years.  The strategies Matt Golab has established and passed on through successful financial planning with hundreds of clients over the years has launched him into the national spotlight.

He is often featured in Retirement Advisor Magazine, a publication which attracts the top financial planners in the country. Matt has been featured in newspapers around the country passing on the principals for a successful retirement. Golab is often asked by national websites that focus on the education of consumers to present his knowledge on the areas of retirement and retirement income plans.

Matt is frequently featured in The Wall Street Journal, CNBC, MSN Money, The San Francisco Chronicle, Newsweek, TheSmartRetiree, Burlington County Times and appeared nationwide on ABC, CBS, Fox, and NBC as well as USA Today.

Matt has a weekly radio show where he discusses all aspects of retirement planning, total wealth management, and estate strategies. Through his relationship with Retirement Radio Network experts such as David Walker former Comptroller General of the United States, Harry Dent of the H.S. Dent Foundation, John Bogle of the Vanguard Funds and many more have been heard on his show Income Forever.

Golab is the Author of The Consumer's Guide to Planning Your Retirement: Your Guide to Mental Peace and Financial Well Being. Matt Golab continues to expand the geographic reach of his audience and desires to bring his expertise to a nationwide television audience. Matt emphatically states his mission, “I want to change the way Americans view their retirement. They can succeed (stay retired) regardless of what happens in the market".

Contact information for Matt is available at his website, http://www.aaronmatthewsfinancial.com/

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