Prior to the 2008 financial crisis, mortgage-backed securities were all the rage. We know how that ended, with the public getting fleeced and the banks getting bailed out.
As my associate, Steven Jon Kaplan pointed out in a recent "True Contrarian" newsletter, update:
- The latest trend is to do the same repackaging scam with high-yield bonds and related assets, because high-yielding corporate debt is the 2014 equivalent of what mortgage debt had been in 2007.
It's not clear if the title of the following article is intended to be sarcastic or not, but it's certainly true that investors are easily fooled into buying recycled garbage roughly every seven years without exception. Not surprisingly, these new securities are rated AAA by Standard & Poor's:
Do you think that JPMorgan or Goldman Sachs have the best interests of the general public at heart? I didn't think so.
What's shocking to me is that so many people today have been brainwashed into believing that the Federal Reserve has their back and therefore the stock markets cannot experience another severe bear market. This despite the fact that we've experienced a severe bear market every seven years since for the past two decades and so much evidence suggests that the next one is already beginning.
If you believe the Fed is on our team, please watch this critically-acclaimed free documentary, "The Secrets of Oz."
If you'd like to learn how to protect and grow your money in a bear market, click here to get your free report now.