The Julia La Roche Show #264 Chris Whalen: No Fed Cuts Coming, Silent Subprime Crisis Brewing & Why Gold Still Wins
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Jun 10, 2025 Chris Whalen, chairman of Whalen Global Advisors and author of 'Inflated', shares his insights on the current economic landscape. He forecasts no rate cuts from the Fed this year and warns of a brewing silent subprime crisis in multifamily real estate. Whalen discusses the looming threat of stagflation, where persistent inflation erodes purchasing power. He advocates for gold as a safeguard against currency debasement, even as the odds of a recession dip to 27%, highlighting the complexities of the economy in transition.
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Elevated Rates Affect Markets
- Interest rates are likely to remain elevated this year, dampening IPO activity and Wall Street deals.
- This challenges the private equity sector, prompting breakups and sales of firms in pieces.
Silent Subprime Crisis Brewing
- Multifamily real estate shows signs of a silent subprime crisis with financed new assets not financially viable.
- Rising costs and rent freezes jeopardize landlord profitability and may force public housing expansion.
Stocks Climb Amid Limited Alternatives
- Stocks are expected to rise despite challenges because investors lack alternative places to go.
- The dollar remains dominant even cryptocurrencies are pegged to it, supporting US stock market resilience.