Chris’ note: A housing crisis is moments away. And it will hit one group of stocks harder than most…
That’s the warning from colleague Nomi Prins. She’s a former investment banker and the author of a series of bestselling financial books. She also called the 2008 crisis four years in advance. So, she’s worth listening to on this.
When she was on Wall Street, Nomi had a front row seat to the early stages of the subprime mortgage crisis. And today, she believes a similar crisis is on its way.
Read what Nomi is recommending subscribers do to prepare today.
Markets don’t care about you…
They don’t care who you vote for… what you wear… where you live… or where you work.
They care about only two things – money in and money out.
That’s the hard truth I learned over my 15-year career as an investment banker.
And right now, I’m seeing a massive outflow of money from one sector of the economy – housing.
In fact, it’s the biggest outflow since the housing market bust in 2007… one year before the 2008 crash.
Which is why I’m going live with my Countdown to Housing Crisis 2.0 broadcast tomorrow night. (You can automatically sign up here.)
I’ll be showing you why this is shaping up to be the biggest crisis we face in 2023… how you can protect your downside… and even profit.
First, for readers who don’t know me, a quick introduction.
A Warning Nobody Heard
I got my start as an analyst at Chase Manhattan Bank in 1987.
And I went on to hold senior positions at Lehman Brothers, Bear Stearns London, and Goldman Sachs.
But in 2002, I walked away from Wall Street.
And I’ve since dedicated my life to helping folks like you navigate the often-dangerous market distortions Wall Street banks leave in their wake.
I dug into the elite connections that shaped corporate favoritism. I studied the resulting scandals. And I warned of the calamity that would come to the financial system.
It allowed me to forecast the 2008 financial crisis four years before it happened.
I published my first book about this in 2004, Other People’s Money. And I warned readers that the “next bull market’s bust will be even more devastating than the last one.”
I even wrote this about the activities of big banks and insurance companies, such as AIG…
A brewing conflict of interest at the [big] banks is their use of credit derivatives… The picture will only worsen when [insurers] start admitting their losses… which they are not obligated to disclose during their fall, but only when they hit bottom.
I did interviews on TV and radio. I spoke to groups of students and politicians. I wrote newspaper articles and books on the subject.
Nobody listened until the crisis hit four years later. And taxpayers had to bail out the banks to the tune of $13 trillion.
Then my phone didn’t stop ringing with interview and speaking requests.
Exposing the Rot
Since then, it’s been my mission expose the rot on Wall Street and corporate America.
I’ve revealed how the too-big-to-fail banks survived the financial crisis thanks to top-level government connections in government and at the Fed.
I’ve traced the blood, money, and power relationships between Wall Street banking dynasties and American presidents throughout the 20th century.
I’ve even filed Freedom of Information requests to uncover how those banking-political relationships affected ordinary folks.
For years, central banks have rigged the system and increased inequality.
By the time the Covid-19 pandemic hit, they’d conjured up $30 trillion-plus in monetary stimulus.
They did this to support major financial players and the markets… at the expense of the real economy.
And it’s resulted in the worst inflation since the 1980s.
Housing Crisis 2.0
As my longtime readers know, this money fabrication has fueled what I call the Great Distortion.
It’s the permanent disconnect between the markets and the real economy.
And due to this distortion, I believe another crisis is coming.
To dampen the inflation, it helped created with all its stimulus, the Fed has been forced to raise interest.
The Fed’s rate has gone from 0.5% in March to 4.0% today. That’s the most aggressive rate hike cycle in decades.
Those rate hikes ripple out through the economy. And one place they’re hitting hard is the housing market.
The average rate for 30-year fixed mortgage rates has surged to 7.3% from 3.1% at the start of the year.
Nobody wants these expensive loans. And we’re seeing mortgage lenders go bust.
And don’t just take my word for it. Here’s Bloomberg…
The wave of [bankruptcies] that’s coming could be the worst since the housing bubble burst about 15 years ago.
It reminds me of 2008 so much, I’m calling it Housing Crisis 2.0.
If your portfolio contains a certain group of stocks, your losses could be catastrophic.
That’s why I just issued an urgent sell alert on three companies with a ton of exposure to the housing market.
And I’ve put together a report on them. It’s called The Terrible Three: Sell These 3 Toxic Stocks Now.
The good news is there are ways to profit from what’s about unfolding now.
In the last housing crash, a few hedge fund managers figured out a way to bet against the housing market.
They walked away with fortunes. They’ll never have to worry about money again.
Tomorrow, December 13, at 8 p.m. ET, I’ll show you how we can take that same kind of approach for this crisis.
I’ll also reveal a little-known strategy I learned on Wall Street that could help you turn this housing crisis into big profits.
I’ll even pass along the name and ticker symbol of an opportunity I believe could be one of the top plays of 2023… free of charge.
I sounded the alarm on the 2008 crisis before it hit. And folks in high places didn’t like it. I won’t shy away from doing it again.
Editor, Distortion Report