Mark Yusko: "We're On The Path To Another Great Depression"

Tyler Durden's picture

Mark Yusko, CIO of Morgan Creek Capital Management, is unafraid to say it how it is. Recall in May, his keynote address warned:

“I’m telling you right now, the US is going to have a crash and it will be massive,” noting that that efforts to generate growth through fiscal stimulus and tax cuts will prove futile because the working-age population in the US is declining. As such, consumption - which makes up 70% of the US - will continue to fall.

 

Adding that “every time a President leaves the White House after two terms, there is a recession within the first year of the new administration. I believe this time will be no different.”

Well now Yusko warns of similarities in the  current period to the buildup to the Great Depression and warning that this fall is when things will come to a head.

Yusko told CNBC on Monday that he believes too much stimulus and quantitative easing has resulted in a "huge" bubble in U.S. stocks.

"I have this belief that we're flowing toward the path of 1928-29 when Hoover was president," Yusko said.

 

"Now Trump is president. Both were presidents with no experience who come in with a Congress that is all Republican, lots of big promises, lots of things that don't happen and the fall is when people realize, 'Wait, it hasn't played out the way we thought.'"

He points to evidence of declining growth as well as that fall is a weak time traditionally for the U.S. economy as people return from vacation.

"[By the fall], we'll have a lot more evidence of declining growth. Growth has been slipping," he said.

Mark points to key indicators such as credit growth and tax revenues, which are declining, as proof a recession is around the corner.

He also sees trends that are going to push interest rates down, making growth harder to find and emerging markets more attractive. Those trends are the killer D's, according to Yusko: bad demographics in the U.S., Europe and Japan and too much debt and deflation.

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NotApplicable's picture

If only there was a borrower of last resort to keep demand stimulated...

Raffie's picture

Buy the PVS-14 WP night vision.

See them at night when they trying to come in at night to kill and rob you.

J S Bach's picture

"We're On The Path To Another Great Depression".

Yes, we mortal plebs are.  But, our (((masters))) are on the path to another "Great Fleecing".  How they must marvel at the gullible stupidity of their enslaved flock of useless eaters.

ThirdWorldNut's picture

Is it just me who thinks bring it on, lets get it over with already?

Been waiting since 2008.

NoDebt's picture

For most people in this country, they never left the 08-09' Depression.

 

Joe Davola's picture

Unless they live in Oregon, now they can legally not care what condition their condition is in!

Dammit Walter's picture

Fuck it Dude, let's go bowling.

pods's picture

Which was just a papered over bubble from the crash of '99.  

I cannot believe that a good part of my adult life has been lived during a period of make believe.

pods

GUS100CORRINA's picture

Mark Yusko: "We're On The Path To Another Great Depression"

My response: The data is certainly supporting this presupposition. Our leaders and people have shown absolutely no willingness to change our current destructive course.

AMERICA NEEDS TO END THE FED!!!!! SEIZE THE ASSETS BY MILITARY FORCE IS NECESSARY AND TRANSFER ASSETS TO US TREASURY. FIRE ALL NON-ESSENTIAL FED PERSONNEL AND TAKE OVER OPERATIONS OF FED WITH INTENT TO WIND IT DOWN OVER TIME.

Chupacabra-322's picture

If my gut feeling is right. The Americans Pepole's tolerance with the absolute, open, in your Face

Tyrannical Lawlessness

Amongst these Criminals has run its course. Either arrests of the obvious perpetrators takes place or the fabric which holds together our fragile Society & Institutions will erupt in bedlam, mayhem & chaos.

The Order out of which Chaos has been artificially manufactured & manipulated & stolen by the Failed Institutions & Criminally Highly Compartmentalized Individuals within them that run them.

This is a civil war in progress. One front is full spectrum dominance on consciousness. Another front is law. Another, sovereignty. Another is education. We the People are the true enemies of the state. The state wants to demoralize us. Dumb us down, divide us. Confuse us in the fog of war. This fake news meme is new while propaganda is not so new. Everything is weaponized from food to health care to the economy. The technology in our homes spies on us. Durable goods are designed to fail. Welfare and SNAP wine in the fountains, bread and circus. It can get depressing.

Power is vested in the people. This is always the truth. People choose to give up their power. My point is that on the one hand there is the Truth. On the other hand there is concensus reality.

It all comes back to law. One law that can never be corrupted is the law of nature. Nature wastes nothing. Nature finds equilibrium. Life is everywhere. Mechanics are inviolable. Consensus reality is relativism that consents to untruth, lawlessness, theft, waste, and other unnatural and immoral measures to empower a few at the expense of the many. Many snowflakes like this. They love thier slavery dearly. And they mimic thier idols. So far as I know there is no other species on this earth as creative and amazing as the homo sapien sapien. But for some reason we trade our power for free shit and consent to falsehood.

3 city states and the brussels controlling the demolition of human kind. Bankers and priests. Soldiers and guns. So much entropy. People trade thier dignity.
If there is one basic reason to question the entire shit show it comes down to the fact that the people in office are a threat to theirselves and others. It's demonstrated all the time. It's probable cause for the people with the power to intervene. Remove consent. Indict. Prosecute. Reform. No one in these city states can do it or they would.

38BWD22's picture

 

 

Nice little essay, please let me have the honor of giving you green.

Ghost of PartysOver's picture

Stock up on MSM inspired dips.  I should send them a thank you note for this mornings dip.  It enabled my to get 20 ES contracts on sale.  Already looked in 9 points for $9K payday. Trading 101:  Don't be a gullible naive idiot who buys into the  load of crap presented by The Colosal Turd known as MSM.

Ghost of PartysOver's picture

We have been on the path to financial reckoning ever since the First QE.   Only question is when.  I think it is further off then most people believe. 

 

El Vaquero's picture

Since well before that.  We should have taken our lumps in or around 1971 when Nixon shut the gold window.  Or perhaps LBJ shouldn't have gone hog wild with Vietnam and The Great Society, causing the Nixon Shock.  Or, perhaps the SCOTUS shouldn't have expanded the definition of the Commerce Clause in Wickard v Filburn.  Or maybe FDR shouldn't have seized everybody's gold.  Or maybe, the Fed should have never existed.  We've been building up an overly complex society for quite a while now, and too much complexity is bound to collapse in on itself.  We get front row seats to the final stages of this overly complex monstrosity. 

Dammit Walter's picture

(Agreed, everything headed for destruction at some point but...) Why can't the FED just keep buying the dip like they have essentially been doing since 2009.  Raising interest rates for a few months is a head fake in a boxing match.  Keeps the misinformed drones who are not on The-Special-FED-Pre-Announce-Email-Distro-List on their toes.  The handful of red-pill-folk are inconsequencial and will not affect the herd.

Government needs you to pay taxes's picture

I cant believe the American people allowed their gold to be confiscated.  Can you imagine the firefights that would break out today if .gov went door to door?

Jugdish787's picture

I would say very limited firefights.  Most people would just do what they are being told to do.

 

autofixer's picture

What do you think all of those surplus MRAPs are for?

Peacefulwarrior's picture

Its always the guy with a Safeway bag for a head that get's it right... AGAIN emphasizing (For Now)...

Erek's picture

"We're on the path to another great depression".

We've been on that path since the last one. It's just taking a little longer this time around.

Deep In Vocal Euphoria's picture

no shit!?!?!??! the mafia runs the economy maybe that's why!? everything fucking rigged!!? that's why, maybe!?

 

besnook's picture

the only itlaian involved is draghi. this world is run by the zionazis not the mafia.

cougar_w's picture

There will come a time when you yearn for the days when it was still rigged.

38BWD22's picture

 

 

Bravo re interesting comments on this thread today.

kliguy38's picture

Nahhhh......"Its all Goood".......

Edward Morbius's picture

Felon Yellen said "not in our lifetimes". I believe her.  :~)

FreeShitter's picture

8M or so died in the last one, imagine this coming one.....

Peacefulwarrior's picture

Dude Throw a B behind that number and divide by 2...

cougar_w's picture

6B need to die eventually, soonist if anyone at all can hope to survive.

consider me gone's picture

Can I call you whenever I need a little cheering up?

cougar_w's picture

My advice to anyone having a down day is, shit is going to get a lot worse from here so chear up these are gonna be the good 'ol days.

Countrybunkererd's picture

I remember my dad telling me about how you had to protect your garden from thieves.  I remember him telling me about farmers allowing people to walk their fields after they harvested them.  I remember also the one where people would climb the coal yard slag piles looking for bits of coal to heat their homes.  Another one where the neighbor's dog vanished.  He also told of the ration cards during the war.  People were more civilized and social then.  Look at how people are on the highways today, what do you think they will do when they are fighting for YOUR meal?

Yes, these will be the good old days.

malek's picture

It becomes truly ugly when psychopathic thoughts get dressed up as reasoning

cougar_w's picture

Physics wins. No matter what you think about it.

malek's picture

Yep.
And physics tell us that the earth can easily carry 20B people with today's technology, from an energy/food/pollution/space perspective.
If the psychopaths in charge let that happen falls more into the field of social sciences.

Lost in translation's picture

Deep.

Wow, man, and just think: it only took you 17 years to figure this out.

besnook's picture

the market for printing machines is ready to boom.

MrSteve's picture

Printers have too many presses as things stand now. Overcapacity in the industry is a long-standing issue. The real "printing" for money goes on as book entries, not making currency on paper. Only the government puts ink on paper and causes the paper to lose value!

medium giraffe's picture

Great? It's gonna be fantastic!

oddjob's picture

I think Yusko used the term terrific!

TePikoElPozo's picture

he forgot to mention the FED and their depression causing abilities...

Fireman's picture

Not even the money changer USSAN banksters can nor ever will be able to print WEALTH.

As Mr Marx explained for those who were listening (obviously not his fellow tribe member$)

"Capital is the sweat of the working class".

Of course if you have NO worker bees then how the fukk are you going to make honey?

 

 

Onward to Hooverville.... reloaded!

Dumpster Elite's picture

Hey, the guy may be right, however, from his statement, he sounds like a left-winger chock full of sour grapes because his Queen isn't on the throne. His prediction loses some luster on me.

aliens is here's picture

No worries there will be a massive beautiful giant wars to stimulate the economy and trim the world's population at the same time. Moar wars baby. John (hero) McCain and his sissy friend Graham loves it.

zzzz88's picture

average joe's kids were enslaved first, then sent to battle field to die.

remember, macain's son will not in the battle field.

so do not expect the war to save you and me

cougar_w's picture

Sadly, I have to agree. But just so you know, it won't save the economy.