Greg Hunter – Trader/analyst Gregory Mannarino says don’t be fooled by the recent surge in the markets. Mannarino explains, “I think the Federal Reserve is legitimately becoming fearful of what they have done. There is no recovery here whatsoever. All you have to do is look at two metrics and two metrics only. The Labor Force Participation Rate remains near record lows.
The money velocity, that’s the rate the money is moving through our economy, is remaining at record lows. Without these two metrics moving higher, you cannot have a recovery. What we have here is a debt bubble, and everything is being inflated right now on the back of that debt bubble. I think some people at the Federal Reserve are trying to warn people that the environment we are in is very dangerous.
We’re hearing the biggest guns on Wall Street, all of them, and not one of them is not trying to say something is very wrong here. We keep hearing about a debt market super nova, that the bond market is in a bubble, which is inflating a stock market bubble. . . . There’s never been anything like this. This is uncharted territory. The Federal Reserve never had a plan to get out. . . . Now, their new scheme is they want the economy to ‘run hot.’ . . .