Washington, DC -- (SBWIRE) -- 02/27/2014 -- Nationally Syndicated Financial Myth Busting Radio Show with Host Dawn Bennett, CEO of Bennett Group Financial Services, LLC, on February 23, 2014, interviewed Michael Snyder, attorney, researcher, writer, and activist working hard to bring renewal to America. He is the publisher of the Economic Collapse Blog and author of “The Beginning of the End”.
They discussed Washington scrapping the debt ceiling altogether, how the Fed’s exported inflation is starting to collapse third world currencies, and signs China could be facing a Lehman Brothers moment.
The show airs live on www.WMAL.com each Sunday at 11 am EDT. It now has over a year’s worth of achieved interviews for listeners free on-demand at http://www.financialmythbusting.com.
Dawn discusses educational topics and events in the financial news, along with her thoughts on the economy, financial markets, investments, and more with her live guests, who have included Rock Legend Ted Nugent, as well as Steve Forbes and Grover Norquist. Listeners can call 855-884-DAWN as well as take podcasts on the road and forums for interaction. The show is a great complement to Dawn’s monthly investing seminars that take place at Tysons Corner in McLean, VA, where she discusses investing. The next one is slated for March 27, 2014 at 7 pm.
“We strive to provide our American listeners insight into the global world of investing, challenge Wall Street and policy makers constantly in an effort to uncover the true state of the nation and the economy,” said Ms. Bennett, who has been an investment professional for 27 years.
Here are some thoughts from Mr. Snyder:
“In China, most people don’t realize what’s been going on over there. Since the financial crisis of 2008, the credit bubble in China has exploded. In 2008, the total amount of all banking assets in China was about $9 trillion, today it’s about $23 trillion according to the World Bank. The size of credit growth is roughly the size of the entire U.S. banking system. They replicated the U.S. banking system in just five years. It’s a gigantic credit bubble that is out of control and now a lot of these debts are starting to go bad. We heard of a couple of near defaults recently. There is great concern that this gigantic credit bubble, which has helped fuel a lot of the so-called recovery we have seen around the world, is starting to burst. That can have a huge impact on the entire planet."
“A lot of people started getting loans that didn’t deserve to get loans as well as companies just like we saw with the sub-prime mortgage market in the U.S. That’s why a lot of these loans in China are turning bad. Everyone was getting money at one point and that’s what happens when there is a lot of euphoria. It’s not only happening in China, but over in Europe, in Spain and Italy, the level of bad loans is at an all time high. There are loans going bad all over the world."
“Signs of tightening are troubling, whether it’s the Chinese government, which seems determined to bring this credit bubble under control will have an impact on the U.S. and Europe. The Federal Reserve over the last couple of years through Quantitative Easing (QE ) has pumped a tremendous amount of money into the financial system. So much of that hot money has gone into emerging markets in search of yield and return. Now the Federal Reserve is saying it is going to taper QE and has done a couple of rounds, with more to come."
“That’s a signal to investors all over the world that the process is starting to go in reverse. So investors have started to pull out tremendous amounts of money from emerging markets. This is having huge repercussions. For example, Argentina, and Venezuela’s currencies are collapsing and we are seeing rampant inflation, rioting and crime in the streets, blackouts and runs on the banks and general chaos in South America. But it’s not only happening there. There’s been currency collapse in Turkey. In India, the head of their central bank is pointing at the Federal Reserve here as causing the problems they are experiencing there. In South Africa, unemployment is over 24%. Even Europe, in Greece, unemployment has risen to an all time high of 28%. All over the world we see huge economic collapse on a country-by-country basis. Eventually these problems are going to reach our shores as well."
“This is the leading edge of the next great financial crisis. Most people believe since things have been relatively stable since 2008 that the problems have been fixed with the financial sector. Unfortunately that’s not the case, so many of the problems are worse then before. According to the Bank for International Settlements, global debt levels are 30% higher than the last financial crisis. The U.S. national debt has gone from $10 trillion to more than $17 trillion. People remember too big to fail and that massive problem back in 2008. Since that time, the six largest banks in the U.S., J.P. Morgan Chase, Bank of America, Citi Group, Wells Fargo, Goldman Sachs and Morgan Stanley have collectively gotten 37% larger over the past five years. The problem of too big to fail is larger than ever. Four of the six banks according to government figures each have exposure to derivatives in excess of $40 trillion."
“Wall Street has been transformed into the greatest casino in the world. Banks should have learned their lesson from the last financial crisis and stopped being so reckless. Instead, having been bailed out of their problems seems to have emboldened them to become even more reckless. Remember the U.S. national debt is $17 trillion. Many people may say they don’t like the big banks and let them fail. The problem is like treating advanced cancer in a patient, you may kill the cancer, but also kill the patient. It’s the same with the big banks. They now account for 67% of all the assets in the U.S. banking system. Bank of America accounts for about a third of all business loans. If these banks start failing and can’t make loans and credit freezes up, we’ll be in a massive amount of trouble because our economy is based on credit. Without credit, people can’t buy homes, cars, and start businesses, etc. If these banks go down, we’ll see credit completely freeze up. Businesses will fail and unemployment will skyrocket. People won’t be able to pay mortgages and they will fail. It can have a massive cascading effect. The health of these big banks is critical. Over the past five years, 1400 smaller banks have gone out of business. The industry is now more concentrated than ever.”
Bennett Group Financial Services LLC, based in Washington, D.C., is a comprehensive financial services firm committed to providing opportunities to clients’ as they seek long-term financial success. Its customized programs are designed with the potential to help grow, lower overall risk and conserve client assets by delivering a high level of personalized service and skill. For more information, call 866-286-2268 or visit www.bennettgroupfinancial.com.
Securities offered through Western International Securities Inc. (WIS), member FINRA/SIPC. BGFS and WIS are separate and unaffiliated entities.
About Dawn Bennett
Dawn Bennett is CEO and Founder of Bennett Group Financial Services. She hosts a national radio program on www.WMAL.com called Financial Myth Busting http://www.financialmythbusting.com. She can be reached on Twitter @DawnBennettFMB or on Facebook Financial Myth Busting with Dawn Bennett or firstname.lastname@example.org