Wolf Richter, Peter Kendall, Chris Waltzek Ph.D. & Robert Ian - May 4th, 2018 - ©2005-2018. A Spina-Waltzek Production-©2005-2018 http://radio.goldseek.com/ Royalty free music from Google Play. Discl

May 4th, 2018Featured GuestsWolf Richter & Peter Kendall Show HighlightsWolf Richter, founder of WolfStreet.com returns to the show with cautionary comments on the US financial sector. Unlike many Wall Street bears, Wolf Richter does not expect the markets to implode, but instead, following a decade of record growth, stocks / bonds could under perform expectations.Although our guest does not view himself as a 'Gold-Bug' per se, he does note the positive portfolio-balancing qualities of gold / silver / shares. The discussion includes a recent article he penned on the housing sector, which reviews key US cities that have eclipsed their former 2006 housing bubble peaks.While real estate is a local market where many regions / towns remain fairly valued, on the contrary Wolf Richter finds key major cities with SFH prices at potentially frothy levels.Our guest reports encounters with the ominous mantra, "Housing can only go up in price," suggesting from a contrarian perspective, the US SFH market may be ripe for a price correction. Quicken Loans is now the leading US mortgage lender, specializing in infamous sub-prime mortgages via bond issuance's.Given that the company is unbacked by traditional agencies, without a "Fed put" to protect against exposure, the situation may represent a loose cornerstone in the foundation. Key takeaway - capital preservation should be the top priority - bank CDs / Treasury-Bills offer a small yield and may help shield investors from unwanted volatility in the financial markets while the PMs improve investment portfolio beta balance.  Peter Kendall, coeditor of The Elliott Wave Financial Forecast makes his show debut. Current Elliott Wave analysis suggests that the US shares indexes are registering ominous signals. Whereas hard assets such as the precious metals have swung so far out of favor relative to paper assets (stocks/bonds), a multi-year uptrend may be commencing (Figure 1.1.). A new commodities bull market is overdue, which could put paper assets such as US equities under considerable pressure for years while catapulting the PMs and energy sectors skyward.The Elliott Wave Institute expects a deflationary dilemma to impact the global economy due to the nascent trade war, similar to the 1930's Great Depression. The host notes the dissimilarities between the industrially based economy of 1930 and the information age / debt driven economy of 2018. Signs of hyperinflation continue to erupt all over the world, in Venezuela, cryptocurrencies, global housing markets, etc. The host posits that Fed, PBoC, BOE and BoJ policymakers will continue QE / ZIRP procedures resulting first with a 1970's style disinflationary environment.The net result could be a worst of worlds scenario where jobs are sparse and prices erupt, followed by a hyperinflationary "crackup boom" as anticipated by Joseph Schumpeter. The US government is now the leading mortgage lender, with the FHA climbing from 2%-20% of SFH mortgages. According to one media report this week, Fannie Mae required a $4 billion bailout recently to recover from a $6 billion loss, stemming directly from subprime-like policies. By increasing the DTI to 50% and downpayments to merely 3%, officials essentially underwrote a new subprime housing bubble or Echo bubble, further corroborating the hyperinflation thesis.Please Listen Here Dial-Up Real AudioMP3Mp3 FAST DownloadMp3 High Quality DownloadRight click above & "Save Target As..." to download. To learn more about software needed to play the above formats, please visit the FAQ. TIP JARBTC QR Code142m3N7vAxQfMi39gJt29MFHcsFQSNYGjS