Millions of Americans depend on stock market investments for their financial security.
While stock prices seem to be looking steady currently, some are skeptical.
And a former Congressman who predicted the mortgage crisis 10 years before it happened just made a dire warning that could bankrupt millions.
Many Americans look at the Federal Reserve as a cause for many of the economic problems that have plagued our country in recent years.
One of the leading opponents of the Federal Reserve is former Congressman Ron Paul (R-TX).
Paul has run for President multiple times, and has made the Federal Reserve the central issue of his campaign in each run.
Months ago Paul made a prediction that the Federal Reserve’s actions will have serious consequences for the stock market.
He cited government figures that showed America’s gross domestic product falling to 0.7 percent, the lowest rate in years.
Paul was then sure that a bust was inevitable, stating:
“We spend too much, we borrow too much, and we distort the markets . . . The bigger the distortions have lasted, the bigger the bust will be.”
Just a few short months since that prediction, Paul doubled down stating that escalating dysfunction in Washington will create more pain for Wall Street.
He predicted the market could plunge by over 50%, and stated that he believes it will happen within the next year.
Paul did reiterate that while the collapse will be caused by dysfunction in Washington, that it won’t be President Donald Trump’s fault.
As reported by CNBC:
“Ron Pau’s sell-off prediction just got more severe.
The former Republican Congressman from Texas believes escalating dysfunction in Washington will create even more pain for Wall Street.
“A 50 percent pullback is conceivable,” Paul said on “Futures Now” recently. “I don’t believe it’s ten years off. I don’t even believe it’s a year off.”
According to his calculations, it would cut the S&P 500 Index in half, to 1212, and the blue-chip Dow Jones Industrial Average would collapse to 10,837.
Paul noted that there’s a lot of chaos in Washington right now, with an “unpredictable president” and those who are inclined to “tear him apart” but if the market takes that big of a tumble, he doesn’t see it as Trump’s fault.
“It’s all man-made. It’s not the fault of Donald Trump in the last week. If the market crashes tomorrow and we have a great depression, he didn’t do it in six months. It took more like six or ten years to cause all these problems that we’re facing,” he said.
What’s more, it would come at the expense of businesses who are counting on reforms such as tax cuts and fewer regulations, according to Paul.”
While many are dismissing Ron Paul’s predictions, many of his predictions have been proven right throughout the years.
All that is clear is that if Paul is right, millions could go bankrupt.
Do you think Ron Paul is right?
Let us know your thoughts in the comment section below.