“My biggest fear is not so much what the market is going to do,” said Gregory Mannarino. “If we end up in a situation where we have a credit freeze, where there is no cash to be had, people are gonna go into absolute panic mode. That’s really what was going on.”
Mannarino says avoiding a credit freeze has been the reason for capital injections in recent history. “It wasn’t about freeing up the markets,” he said. “It was about freeing up credit so money would start to flow again, and people could transact.”
He imagines people not being able to go to the store, because their ATM and credit cards don’t work. He wonders, what are people going to do in that case? “People are going to go nuts. That’s the biggest issue. If something was going to keep me up at night, that is what it would be. Not really so much what the markets are going to do.”
Mannarino says, If you are hedged, you are sitting pretty right now by being on the long end of the market until we can’t. And then by having anti-debt units in your portfolio, you’re okay.”
While Mannarino believes gold will reach a fair value, that might not be for a while. “We’re not going to see any real big movement with regard to precious metals until we get the meltdown in the debt market,” he said. “Our cash is going to start moving very, very rapidly, once it starts bleeding out of the debt market and the stock market.” Mannarino says its going into precious metals and Bitcoin.
“It’s gonna be a bloodbath on a scale we’ve never seen before, because the market is so distorted. It is in a hyperbubble. It’s going to turn into a very bad meltdown. Much much worse than last time.”