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Wall Street’s $620 Billion Crisis—Nomi Prins on Recession, Gold, and What’s Coming Next

Mar 27, 2025
Guest
Nomi Prins
In a riveting discussion, Nomi Prins, an economist and bestselling author, delves into the looming $620 billion crisis over Wall Street linked to loan losses. She warns of acute risks like inflation, soaring consumer debt, and potential stagflation. Nomi shares insights on the Federal Reserve's possible interest rate cuts and their implications for the economy. She also highlights Europe's increased defense spending amidst global tensions and explores gold's rising status as a safe haven amidst these uncertainties, especially as China diversifies away from U.S. Treasuries.
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INSIGHT

Fed Meeting Takeaways

  • The Fed lowered its growth forecast to 1.7% while raising inflation expectations to 2.8% due to tariff uncertainties.
  • Nomi Prins believes actual growth could be even slower and that the Fed's 2% inflation target is unrealistic.
INSIGHT

Economic Slowdown

  • Record debt levels across all sectors, from government to consumers, are a major economic drag.
  • This debt overhang, combined with persistent inflation, is slowing the economy.
ANECDOTE

Consumer Recession Indicators

  • Delta, American, and Southwest airlines issued profit warnings, citing decreased travel due to consumer concerns and tariff uncertainties.
  • Retail bankruptcies are expected to double in 2025, highlighting the weakening consumer.
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