The market was well over 18,000 then and currently more than 2,000 points lower.
Mannarino now says the Dow is going to “6,000–or lower.”
Mannarino warns, “People need to be ready for a major, extreme sell-off in equities which are inflated in a bubble.”
Mannarino also says that the current stock market is, “the biggest bubble of them all that was inflated by a runaway central bank, and I believe it is bursting now.”
“There is nothing to push this back up.”
On physical gold and silver, Mannarino says, “This year, 2016 is the year for precious metals.”
“I believe we are going to enter a scenario that I call an “X-Wave,” an X-Wave theory that I came up with where we are going to see the stock market drop downward, and then you are going to get a crossover with an upward trajectory of precious metals, and this also will be extreme.”
“All of this has to correct to fair market value. We have nothing but a twisted distorted market that is so out of touch with reality that it is, frankly, mind blowing.”
“It will correct to fair market value–period. There are no “maybes.” There are no “ifs.” It will correct, and we are seeing it now.”
It’s widely reported that the global economy is dramatically slowing down.
Mannarino asks, “So, how can world markets, including the United States, justify their multiples? They can’t do it. It has to correct.”
“We are in a phase that it is correcting to a fair market value. They are expecting some miraculous event to occur where, all of a sudden, the economy of the United States and the world is going to turn around.”
“It’s not going to happen. It’s not going to happen here.”
“The Federal Reserve is going to be forced to do something, and they are going to call it who knows what, but they are not done stimulating and they are not done printing. ”
“They are not done from attempting to keep this propped up.”
Mannarino goes on to say, “This is going to make the 2008 event look like child’s play. We are going to drop lower than we did before. The Federal Reserve is out of ammo.”
“The Fed can go negative interest rate. Maybe it will put a temporary bottom in this market, but it’s going to hurt the people. There is no doubt about it, the economy of the world is slowing. The U.S. economy is slowing.”
“You can look at metric after metric, Baltic Dry Index, GDP numbers just missed the mark and manufacturing numbers also missed the mark.”
“You can just go on and on and on. I don’t know what kind of proof people need to say Obama is peddling fiction. We are slowing down, and people are going to get hurt here, and I mean hurt badly.”
“It will be way worse than the last meltdown, and this event will not bounce back like it did last time.”
In closing, Mannarino warns, “Bond yields are screaming, and the bond market is warning every single one of us that something is very ugly, and it’s right around the corner.”
“Everybody is going into bonds because it’s the safety play, but the debt is worthless, and at some point, even the bond market is going to price to fair market value.”
“It’s a situation of extreme danger across every single asset class.” CLICK NEXT PAGE
Join Greg Hunter as he goes One-on-One with Gregory Mannarino of TradersChoice.net.
(There is much more in the video interview.)
This article is brought to you courtesy of Greg Hunter from USA Watch Dog.