List of Forecasts from America's Financial Apocalypse

Here are just a few predictions made by Mike Stathis in America's Financial Apocalypse.

Stathis:

 

• Predicted the collapse of the commodities bubble in 2008/2009 and told readers that would be the time to buy - Chapter 14
   
• Warned that the credit rating agencies were passing AAA ratings to risky mortgage debt – p. 219
  
  
• Warned of the lack of adequate regulatory authority over the MBS market positioned it for a massive collapse – p. 222
  
  
• Warned of a mortgage-related derivatives meltdown resulting in losses in the trillions of dollars – p. 221
  
  
• Warned that the banks would suffer as a result of the implosion of the MBS market – p. 223
   
• Warned that an implosion of the MBS market would lead to a massive sell-off in global stock markets - p. 223
   
• Advised readers to short LEND, FRE, NFI, FMN, FRE, banks and homebuilders (Cashing in on the Real Estate Bubble)
  
  
• Stated the that Fannie and Freddie would be bailed out by taxpayers – p. 221

 

 

• Stated real estate prices would decline by 35% on average (50-60% in certain regions) – p. 223
   
• "I would estimate at its bottom, the deflation of the housing bubble will cause a 35 percent correction for the average home.  And in “hot spots” such as Las Vegas, Northern and Southern California, and South Florida, home prices could plummet by 50 to 60 percent of their peak values." (Cashing in on the Real Estate Bubble) --pp. 67-8
   
• Predicted the possibility of Dow 6500, showing compelling evidence - Chapter 16, pp. 336-342  
   

• Warned that the collapse of the real estate bubble and stock market would lead to the “Poor Effect,” opposite to that seen during a rising stock and real estate market – p. 201
  
  

• Provided exhaustive evidence of a massive real estate bubble ready to burst – Chapter 10 – the most exhaustive and insightful analysis anywhere
  
  

• Warned that GM and GE would also be affected by the real estate implosion – p. 223
  
  

• Warned of the possibility of the ABS markets imploding – p. 223
  
  

• Predicted and proved irrefutable evidence there would be a depression – Entire Book
  
  

• Predicted there would be a New Deal – p. 346
  
  

• Warned about the entitlements tsunami which will, by absolute necessity result in massive tax hikes -- Chapter 11
  
  

• Addressed healthcare as the second biggest long-term problem faced by America and detailed the problems - Chapter 7
  
  

• Advised investors to trade the volatility of gold rather than buy and hold – p. 381
  
  

• Advised investors to invest in oil trusts as a way to deal with the high volatility of oil -- Chapters 17 and 18
  
  

• Mentioned the possibility that the Fed would intentionally create massive inflation in order to pay off the huge national debt – p. 362 
  
  

• Provided a generic asset allocation for conservative, moderate and aggressive investors – in each case, Cash was the #1 asset (so they would be able to buy after the market crashed). p. 383
  
  

• Other assets recommended were oil trusts, gold, silver, Chinese funds (note my warning that China’s economy would correct, indicating a time to buy below), healthcare, TIPS, Dollar hedge with the euro – p. 383
  
  

• Predicted an inflationary depression followed by brief periods of deflation if things got really bad (we experienced deflation during Q4, 2008) -- Chapters 16 and 17
  
  

• Discussed effective ways to manage risk – pp. 376-385
  
  

• Detailed how the government manipulates economic data (GDP, inflation, unemployment) and WHY - Chapter 11
  
  

• Explained how gold was a hedge against deflation, not inflation – pp. 360-362 -- he followed up on this in detail to help the sheep who are being taken by the gold bugs despite the fact that he forecast gold to soar to above $1400 and perhaps $2000 in this book.
  
  

• Explained how America today (2006) shared many similarities to pre-depression America – Chapter 16, pp. 343-346
  
  

• Warned of the possibility of China dumping U.S. Treasuries or using this threat for economic (such as unfair trade and currency manipulation) and political leverage pp. 308-309, 312
  
  

• Explained how corporate America is destroying the middle class – Chapter 12, pp. 322-325, 257-262
  
  

• Detailed America’s two-decade period of declining living standards – pp. 243-248
  
  

• Explained how the SEC permits legalized insider trading by corporations – pp. 255-256
  
  

• Proved how the economy under Bush was a disaster and was set to implode – Chapter 15
  
  

• Explained how the SEC is useless and serves as a partner in crime with Wall Street – Chapter 12
  
  

• Explained how the dollar is backed by oil and how the Saudis have a huge amount of control of the fate of the U.S. economy, pp. 310-311
  
  

• Predicted that most baby boomers would never be able to retire due to the stock market collapse – Chapters 8 and 13
  
  

• Exposed the myths and discussed the real problems with Social Security – increased dependence and loss of buying power – Chapter 8

 

• Predicted the rental market boom that would occur once the real estate bubble popped and the recovery began (Chapter 10) 
  

• Predicted the boom in reverse mortgages after the real estate bubble popped and the recovery began (Chapter 10)