US economy will weaken in 2019: Dennis Gartman

The Gartman Letter editor Dennis Gartman and FBN’s Charlie Gasparino discuss the current state of the stock market and the economy.

[orgr]

I think people don't really understand what's going. Yeah there are jobs yeah the economy is moving but the prices for the cost of living are inflating at alarming records.

[LouMontana-wcnr]

It is coming and it is going to hit Trump's little supporters hard.

[shadowartz]

Economy will destry itself. Its based on interest.

[nthperson]

The U.S. economy is in the middle of a new land/property market cycle, a cycle that averages 18-21 years depending on the extent to which monetary policy provides a high or low level of credit for speculation in land and property. A strong indicator that the markets are heavily speculation-driven is the extent to which investors are involved in acquiring property with the intent of rapid turnover (i.e., flipping for quick gains).


By lowering interest rates to rock bottom after 2008, the Federal Reserve prevented the nation's land markets from clearing the speculation-derived gains realized in the last cycle. Instead, property prices were propped up. Low mortgage interest rates were capitalized by market forces into even higher land and property prices than were reached in 2007. The result is that millions of households (and many businesses) are burdened with historically high levels of mortgage debt. Servicing this debt at low rates of interest is not the issue. Any interruption in income, employment or business revenue will result in huge numbers of mortgage loan defaults, with the incidence of loss per loan higher than was experienced with the collapse of the sub-prime mortgage market in 2008.


I teach a semester-long course on "The State of the U.S. Economy and Society." The Powerpoint modules used in this course are available on SCI's website for anyone who has the time and interest to look at the situation in depth. The course modules can be accessed here:






Edward J. Dodson, M.L.A., Director
School of Cooperative Individualism

[tusk]

Russia has been swapping US debt for physical gold, so they have further gained stability in their ability to implant liquidity, if need be to counter any severe global encumbrances. These practices and the majestic potential of full autonomy and self sufficiency, provides the Petri-dish, whose culture, if successful, may become the model for which the rest of the world can follow. A world, very much the opposite, with predatory financial instigation and a glad bag of idiosyncrasies that favour a derelict few, are thirsting for real change. As we wake to our spiritual heritage, the hylozoism within all that compels respect, we will begin to respect each other without benefit of doing so. These potentials are hard to qualify into your analysis and study and yet they exist in gold doubloons vaulted somewhere deep within Russia and in the heart and soul of discussions just as these. Great show, (from the author of Really Small Town, a song about the worlds double standards) BB

[rjtheripper]

how competitive is our job market. there's going to come a point where the well is going to dry up.

[joeypickles]

When interest rates rise the economy slows, why all this waffle .

[lal]

Who cares. Save now while everything is good and buy everything cheap when it's bad. That's all "rich" people do

[kenrose]

Yep, I've been betting against the economy since August and I'm winning ( I wonder what Liz is saying nowadays )

[wonglee]

These Terrible Tariffs are going to do in stocks and the dollar. This was recorded in October fast forward to late December last five weeks out the work week three of out of five days the dow was down 100-500 points. These tariffs are going to take down the economy it's very evident you don't have to be a stock expert to see that

[christianthecopywriter]

The federal reserve:
Not federal...
No reserves...

[garrybragg]

Coming back to this is funny we went in economy bum or whatever is called sorry :P