Consumer Advocate Barnabic: Almost Entire US Economy Is in a Bubble

Monday, 18 Aug 2014 07:51 AM

By Dan Weil

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
Bubbles are brewing everywhere, says consumer advocate Dan Barnabic. And not surprisingly, he warns that many of us may suffer when those bubbles pop.

"The stars seem to be aligned for the bubble to burst within almost all sectors of the economy. This may spell a serious hardship for an average American," Barnabic writes in an article for MarketWatch.

"Whether it's going to happen later on this year, or in the next three years, isn't a question anymore. The question is, how severe will it be and are Americans going to have enough resources to sustain and recover from it?"

Editor’s Note:
Retire 10 Years Earlier With These 4 Stocks


Stocks might be in the third-biggest stock bubble in history, he notes, adding that financial consultant Andrew Smithers of Smithers & Co. estimates stocks are now 80 percent overvalued.

Barnabic calculates that real estate is overvalued by at least 35 percent and maybe up to 50 percent in some crowded urban areas.

"If real estate was to crash simultaneously with the stock market, the future doesn't bode well for the North American economy," he cautions.

"It may now be time to sell your stock and real estate and hold on to your cash. Later on, you can buy the stocks and real estate cheaper once the bubble bursts and devaluation takes place."

Activist investor Carl Icahn apparently is on bubble alert too. Recent comments from Federal Reserve Chair Janet Yellen "suggest, and I agree, that we are in an asset bubble," he writes on Yahoo.

Presumably Icahn was referring to stocks and some areas of the credit market. The S&P 500 has soared 190 percent from its March 2009 low.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

Related Stories:

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

NY Post: NYSE Might Be Sold as Soon as Next Year

Sunday, 28 Dec 2014 15:52 PM

Intercontinental Exchange (ICE), owner of the New York Stock Exchange, will ultimately sell the venerable Big Board, exp . . .

Auto Title Loans: The New Subprime Crisis

Sunday, 28 Dec 2014 12:30 PM

Just as subprime mortgage loans helped precipitate the 2008 financial crisis, will the current boom in subprime auto loa . . .

AP-GfK Poll: 57% Think Economy Is in 'Poor' Condition

Sunday, 28 Dec 2014 01:08 AM

 . . .

Most Commented
Top Stories

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved