There wasn’t a group of people more wrong about the 2008 financial crisis than those at the Federal Reserve.
Mere months before the disaster hit in earnest, the nation’s highest economic and financial officials were vocal that there was nothing to worry about.
Most memorable of these are perhaps two comments from former Fed Chairman Ben Bernanke…
In January 2008, he said, “The Federal Reserve is not currently forecasting a recession.”
And later that year, in July, he said Fannie Mae and Freddie Mac – the two government-sponsored enterprises that kicked off the credit crisis a few months later – were “in no danger of failing.”
And it wasn’t just Bernanke. The same delusional sentiment was echoed by almost all the top Fed and Treasury officials… as well as those in the mainstream financial media and academia.
Of course, we all know how things played out…
When the housing bubble burst in 2008, the effects rippled throughout the economy, kicking off the largest financial and economic crisis since the Great Depression.
And the S&P 500 – a good proxy for the U.S. stock market – went on to fall by over 56%.
The reason I’m telling you this today is to remind you that people exhibit laughable sentiments near the peak of bull markets.
And today, we’re hearing much of the same sentiment that was displayed before the 2008 crisis.
But as you’ll see below, it’s not the only sign I’m seeing of a coming crisis…
A Contrarian Indicator
I’ve written before about why I believe we’re near the peak of the largest bubble in human history.
And as I’m about to show you, there are clear indicators of a coming crisis… in the auto sector… the housing sector… and in the economy as a whole.
…click on the above link to read the rest of the article…