In early 2007, I co-wrote a report called, “You’re Being Fattened Up for the Kill.”
In that report, my co-authors and I attempted to warn readers of a coming housing collapse and the attendant financial horrors that would follow.
At the time, heavily indebted banks were sitting on toxic subprime loans. But many so-called “experts” missed the warning signs… repeatedly.
Even Wall Street bankers, the Federal Reserve, banking regulators, politicians, and economists failed to see what was brewing.
In 2007, the Fed thought problems in housing and banking were isolated and unlikely to tear down the U.S. economy.
As crisis signals started flashing red, Fed officials believed the troubles would be moderate and short-lived.
Then-Fed Chairman Ben Bernanke underestimated the risks. In December 2007, he said:
I do not expect insolvency or near insolvency among major financial institutions.
Millions of Americans relied on these comforting words by the Fed chairman and failed to heed the warnings from me and others about the coming market carnage…
But who were we to contradict the “experts” when the soothing words of the Fed were telling everyone what they wanted to hear?
Less than a year later, Lehman Brothers imploded, leading to the most spectacular bankruptcy in U.S. history… The market plunged nearly 5% the following day.
The first year of the Great Recession wiped out nearly $2.4 trillion in retirement savings… An estimated 2.3 million people lost their homes… And nearly 9 million people lost their jobs.
Friends, we could see a similar crisis play out this week. And those who aren’t prepared could see their entire life savings wiped out.
That’s why it’s important for you to prepare yourself for a panic that could hit the entire financial system, including crypto.
Caught Between a Rock and a Hard Place
Tomorrow and Wednesday, the central bank will hold its Federal Open Market Committee (FOMC) meeting.
I believe it’ll be the most important meeting in more than a decade…
Because that’s when Fed boss Jerome Powell will decide whether to continue his hawkish policy of rate hikes… or take a more dovish stance and pause or lower rates.
Right now, Powell is caught between a rock and a hard place. And I don’t envy him…
If he continues raising rates to bring inflation to heel… he’ll crash the banking sector.
But if he pauses rate hikes, inflation – which has been slowing since the Fed began its rate hike policy in March 2022 – will rise up and destroy the living standards of hundreds of millions of everyday Americans.
Like I said, I don’t envy him. Regardless of which decision he makes… Millions will suffer.
Earlier this month, Powell suggested in a Congressional testimony that the Fed could increase its rate hike pace at the next FOMC meeting.
But the growing banking crisis threatens that. More rate hikes will lead to more bank collapses. And that could trigger another financial crisis like we saw in 2008.
The Fed’s series of aggressive rate hikes have hammered the value of long-duration bonds because as rates rise, bond prices drop.
Banks own hundreds of billions of dollars’ worth of these long-term bonds. So they have massive unrealized losses sitting on their balance sheets.
Like the 2008 Financial Crisis, these unrealized losses are creating a contagion in the banking sector.
And it’s spreading…
This month, we’ve seen three major U.S. banks collapse. And just last week, the contagion spread internationally when shares of global giant Credit Suisse crashed.
Other banks could soon follow.
Now, I’m not saying we’ll see anything as devastating as the 2008–09 Financial Crisis.
That’s because I don’t believe Powell wants to stick a knife in the heart of the U.S. economy. That’s what higher rate hikes for longer would do.
But I could be wrong…
If Powell raises interest rates 50 basis points during this week’s FOMC meeting… That’s basically him shouting through a giant bullhorn from the mountaintop to the entire country that he’s deathly afraid of inflation…
And he’s willing to do anything and everything to bring it to heel – even if that means crashing the entire banking sector.
Again, I don’t believe that’ll happen.
In my opinion, the odds of a rate hike of 50 basis points are lower given what we’ve seen this past week. We’re more likely to see a rate hike of 25 basis points at the next meeting.
But a higher rate hike is a risk you have to keep that in mind. And that will lead to a massive panic in the markets, including crypto…
Is the Fed Fattening Crypto Investors Up for the Kill?
The sell-off in the banking sector has sparked a huge rally in crypto…
Bitcoin and Ethereum were up as much as 35% and 25%, respectively, since the crisis began earlier this month. By comparison, the S&P 500 is flat over the same span.
And it’s no surprise why…
Bitcoin is no one else’s liability. As long as you custody your own bitcoin, it’s free of counter party risk.
In addition to that, it’s impossible to dilute bitcoin’s value beyond its preprogrammed creation schedule.
While bitcoin is set to be a huge beneficiary of this turmoil… And I expect it to go much higher from here…
It’s not yet the right time to buy into the broad crypto market.
You see, there’s a panic coming to crypto like we’ve never seen before. In fact, this could be the biggest crypto panic I’ve seen in my seven years following this space.
This warning is based on sound research.
I’ve personally met the crypto billionaire who’s pulling the trigger. His developers have confirmed this could happen as early as the end of this month.
I believe it’ll catch millions of Americans by surprise. By the time they realize what’s happening, it’s going to be too late.
Many Americans are using this rally to speculate in meme coins… and a bunch of other fraudulent projects. This coming panic will wipe them out…
But not in a way you’ve ever seen before.
The big mistake everyone is making is they think the entire crypto space will have an explosive rally… AND THEY ARE HORRIBLY WRONG.
The next huge rally WILL NOT carry the whole market up.
Just a tiny fraction of the crypto market will benefit. And if you don’t own these coins, you’ll get crushed… While a small group of better-informed investors will make a killing.
To prepare you for this coming panic, I’ve put together a special briefing on Wednesday at 8 p.m. ET. It’s called The Crypto Panic of 2023.
During this briefing, I’ll explain exactly what will cause this panic – and how you could potentially turn $1,000 into an entire nest egg… All while getting paid each month.
And as a special bonus for those who attend, I’ll even give away my top pick to play the coming panic.
You should know my past free picks have an average peak gain of more than 1,300%.
Just click here to register, and your email address will automatically be added to my RSVP list.
Friends, after the big crypto rally we’ve seen the past couple of days, I can’t blame you if you’re confused by my warning.
Yes, cryptos are on fire right now. People are turning to them because of the problems in the traditional banking sector.
But I beg you, don’t let the Fed fatten you up for the kill.
Before you make any moves… I want you join me on Wednesday at 8 p.m. ET. Because if you make the wrong move right now… It could be among the biggest financial mistakes of your life.
So click here so you can automatically add your email address to my RSVP list.
Let the Game Come to You!