Does it get worse before it get’s better? Nenner says, “I think we are heading for a depression. Usually we go into a recession at a 6% GDP. Now, we have 1.5% to 2% GDP. Usually, the Fed Funds are 6%, 7% or 8%. Now they are almost zero. What are they going to do when we get a recession? You get very fast a negative GDP. You get very fast a negative interest rate and it’s a big mess. This has been going on for many, many nice years and all the Fed presidents had tricks and let it go. They did not want to have a depression in their lifetime like the 1930’s. So they kept it going and now there is no way out anymore.”
So, there is no avoiding a depression? Nenner says, “Yep, and it is going to be very bad.”
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