As Americans, we’re dealing with a lot of challenges right now.
It appears we’re on the verge of a global recession…
Inflation is killing all but the very rich… Mortgage rates are through the roof, melting housing prices like an ice cube in the hot sun…
And depending on the outcome of the midterm elections, we can either expect gridlock if the Republicans win the House… or a series of annual trillion-dollar budget deficits should the Democrats retain control. (Democrats already retained the Senate.)
These are the threats in front of us. And while unpleasant, we can manage them. What concerns me are the threats no one is talking about.
Because right now, there’s a different crisis on the horizon… One that will catch most Americans by surprise.
Now, longtime readers know I’m no alarmist. I will never write cheap headlines for clicks… That’s why it’s important for you to prepare yourself for an event that could tank the entire financial system.
It’s bigger than a recession. Bigger than inflation. Bigger than a stock market crash.
And the last time we saw a crisis of this magnitude ignored by so many “smart” people, millions of Americans lost their homes… Millions more lost their jobs… Untold numbers saw their retirement accounts wiped out.
By the time someone sounded the alarm, it was too late…
A Slow-Motion Catastrophe
Think back to the run-up to the 2008 Great Financial Crisis…
In hindsight, the conditions that set it in motion seem crystal clear. But many so-called “experts” missed the warning signs… repeatedly.
Even Wall Street bankers, the Fed, banking regulators, politicians, and economists failed to see what was brewing.
Just like now, the world’s elites were asleep at the wheel…
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. (Just like how today’s inflation was supposed to be “transitory.”)
According to official transcripts from an August 2007 emergency phone call, former Treasury Secretary Timothy Geithner – president of the New York Federal Reserve Bank at the time – said that Wall Street was doing fine:
We have no indication that the major, more diversified institutions are facing any funding pressure. In fact, some of them report what we classically see in a context like this, which is that money is flowing to them.
Then-Fed Chair Ben Bernanke also 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 chair and failed to heed the warnings from me and others about the coming market carnage…
I remember co-writing a report in early 2007 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.
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.
Here’s the thing about the Great Recession, though… The warning signs were there.
As far back as 2001, credit analysts knew subprime loans were a ticking time bomb… and by December 2007, the entire subprime market was teetering.
The first rumblings came in February 2007, when British bank HSBC set aside $1.7 billion because of problems in its U.S. subprime lending business… and the 9.0 magnitude earthquake came when Lehman Brothers collapsed.
In between, we had Wall Street, the Fed, and our politicians tell us, “Nothing to see here. Move along.”
Just like today, they downplayed the alarmists… Called them “Chicken Littles.”
But those who didn’t heed the warnings lost their jobs… their homes… and their retirement savings.
You Need to Prepare Now for The Next Crisis
I made my fortune here in the U.S., and like Warren Buffett, I believe America will experience even greater economic prosperity in the future.
That said, 32 years in finance has taught me that prosperity does not happen in a straight line. Every 8–10 years, we get a massive purge in asset prices… like we’re living through right now.
My concern is this: What currently feels like a bear-market mauling may, in hindsight, be just a “love tap” before the real carnage begins.
I’m not talking about the collapse of the U.S. dollar or hyperinflation…
The Fed’s recent actions of raising rates will continue to be supportive of the dollar and will eventually bring inflation under control.
But the unintentional cost of reining in inflation and keeping the dollar strong could result in what I call “The Next Lehman.”
As I mentioned above, Lehman Brothers went from being the fourth-largest U.S. investment bank to one of the largest bankruptcy filings in U.S. history.
The bank was hundreds of billions of dollars in debt when it finally collapsed… and its losses shook the market for years to come.
I believe we’re about to experience a crisis with the potential to be 155x larger than the Lehman collapse… One that will compound the pain we’re all feeling from inflation, a weak stock market, and weak housing prices.
That’s why I’m going to share all the details on this “Next Lehman” tomorrow at 8 p.m. ET.
I’ll reveal how preparing now could give you a shot at 14x returns when the crisis hits…
It involves a little-known recession-proof asset that’s less volatile than stocks but offers massive upside… an asset that Wall Street eagerly trades while leaving you in the dark.
Look, I really wish I had better news for you… But I can’t just stick my head in the sand and pretend everything is fine and dandy – because it’s not.
But what I can do is help you prepare for what’s coming…
That’s why during my special briefing, I’ll discuss my “2023 Recession-Proof Portfolio” – and even share the name of a stock on that list – absolutely free – with viewers, just for attending.
Friends, I believe it will be too late if you wait until you hear about the Next Lehman on the news.
So join me tomorrow at 8 p.m. ET… And at the least, you’ll walk away with a free name from my recession-proof portfolio just for attending.
All you need to do to join me is click here to automatically reserve your spot.
Let the Game Come to You!