Loading ...CEO Technician: Last week former Fed Chairman Allan Greenspan came out and said he sees stagflation coming. Stagflation is something we saw in the ‘70s with surging food and energy prices while the economy was weak.
Bob Moriarty: He’s wrong.
CEO Technician: Why is he wrong?
Bob Moriarty: It’s not coming, it’s already here. We’ve already got a weak economy. The retail economy in the US is a total disaster, take a look at the number of retail closures. We’ve got a subprime auto crisis going on and the defaults are already beginning to pile up. Greenspan is wrong in that we’re already in stagflation. Inflation is far higher than any of the indicators are showing; the price of oil is masking the price increases in everything else. The price of oil is going to go back up and when it does Americans are going to be in for quite a shock. The automobile industry is a disaster, the financial industry is a disaster, the banking system is a disaster. We have already started the great crash.