➡ The M2 money supply chart from the Federal Reserve St. Louis is showing a drop for the first time since the 1950s, signalling a major economic shift. Economic ninjas suggests this foretells a major housing crash, the biggest of the last century, due to levels being inflated by easy money. The Federal Reserve is reducing financial support to banks, leading to quantitative tightening, and people are withdrawing money from banks at a fast pace, similar to what happened during the Great Depression.
➡ The speaker warns about potential economic and housing market instability, emphasizing a need for individuals to be educated and prepared to navigate these challenges. They argue that less lending activity might lead to sellers having trouble finding buyers and they anticipate an increase in the housing inventory by spring and summertime in 2024. The speaker also mentions previous significant dips in money supply leading to deflationary depressions, advising listeners not to rely on Federal Reserve’s strategies. Lastly, they urge people to learn the skill of real estate investment to avoid emotional decisions and have a balanced financial portfolio to seize opportunities during economic downturns.
➡ Lawrence Young, chief economist for the National Association of Realtors, has been consistently incorrect with his predictions, including misjudging the 2006 housing market. Despite recent fluctuations, current trends suggest that the median sales price of homes in the U.S. is dropping, which challenges popular belief that prices are not going down. The first market that tops and drops in a real estate cycle are the highest priced homes, regarded as an initial indicator of change. Experts predict the real estate collapse will actually occur towards the end of 2024 or 2025, and it’s advised that wise investment involves strategic buying and cash flow from day one.

It. Hey everybody, economic ninja here. Hope you’re doing well. We’re going to talk today about this, this chart out of the Fred Federal Reserve, St. Louis. Why does this chart matter? From 1955? Going up, going up, going up right here at the great Recession. Stalls a little bit then just blasts higher. It’s that little bit, that little tiny drop is a big deal if you think about it.

Since the 1950s. We have never seen it drop. We’ve seen it slow down. We’ve seen it mellow out. We’ve seen it flatline a little bit during the great Recession, but we have never ever seen it drop. That line is the CM two money supply and it’s a big deal. Let me move the camera real quick. There might be a lot of cars coming by. Why is it a big deal? You see, people say that this time is different and it absolutely is different.

Since year 2000 we’ve seen the Dow Jones come up like 12,000 get cut in half to like 6000 points. Then we saw it come up a handful of years later going into the. Because that was because the. com crash. Then it comes up into the 14,000 point range and then it gets cut down to 6000, 507,000 points again. Another 50% drop. This time is different. See the reason why all of these bubbles exist.

And I’m going to share a story with you that’s very important. And then I’m going to share another very important piece of this puzzle that no one wants to talk about in the country. None of the mainstream pundits want to talk about it because they’re trying to push you into buying real estate. But you are looking down the barrel of the greatest housing crash we’ve seen this last century.

Why? Because every time these levels get pushed up, it’s because of easy money. We have not seen this since the Great Depression. That is right, because we had something called the spanish flu in 1918. Then we had the depression of 1920. Just like imagine the sharp, steep recession we went into during 2020. Right? I hope this makes sense. Then insane money printing for ten years, then it leads to a stock market crash, then a depression.

We are headed towards that right now. Thank you so much, Frank. I will have the inflated coffee on you. I appreciate that. We are headed for something much bigger, which means we have so much more of an opportunity. If you’re simply ready. These crashes seem to creep up on people like the crash of 29 and the subsequent Great Depression. The great recession snuck up on millions and millions of Americans.

People lost their homes, people lost their jobs, now, where are they now? They’re back in the exact same place they are now, back in debt up to their eyeballs. They’re not ready for the next crash. That little contraction in the chart that I showed you is such a big deal because money is being taken out of the system right now. The Federal Reserve has all of the bank, well, not all of them.

Over 700 different banks on life support. They are providing liquidity every day and every night for the banks. What’s happening is it’s coming down little by little. They are reducing the amount. They have gone from quantitative easing into quantitative tightening. Then that quantitative tightening was too much for the banks to resist. They started to fail. Then the Fed had to move in and start injecting liquidity. Well, now the Fed is lowering that amount.

And not only that, the m two money supply is moving. People are withdrawing money out of the banks at rapid pace again. What is happening right now has never happened since the Great Depression. So what are your thoughts? What are the odds that we’re going to keep running up a market higher? 510. As a matter of fact, so many Americans have zero clue about how economics work. They actually think that the economy can go up forever.

Type one, if you think that the economy is going to go up forever. Type two, if you think, no, we’re headed for something much bigger. Here’s a story right now out of the Motley fool. And real quick, I want to remind you, this is the last day ever that the how to prepare for the housing market crash course will ever be advertised again. At $199, it’s going up, going up.

Over ten times the value. Actually, right now it’s an 80% off link. I put it down below. Today’s the last day I will ever speak about it again. But I wanted to make this opportunity because I want people to learn real estate cycles. You do have to have a little skin in the game to take it serious. All successful people know that if you’re successful and you know how big of a deal it is to actually put something.

Invest in your own future, invest in knowledge and understanding, please. Type three. I’m going to go ahead and see if I got something to drink here. My mouth’s getting dry. All right, so we’re going to do is we’re going to read this story out of the Motley fool. It’s entitled the US money supply is doing something not seen since the great depression, and a big move in stocks may follow.

Now, I’ve been getting everyone ready for this real estate crash. I’m going to share a chart right at the end of this that is very important. So please stick around because most people do not want to admit this. And this is the Federal Reserve’s owned data on home prices, okay? Everyone’s really excited because they’re being lied to by the mainstream media. And I’m telling you right now, this is real government.

Federal, Federal Reserve, actually, which isn’t government data, okay? So it says, m two. Money supply is enduring its first meaningful drop in 90 years. Meaningful. It’s the first time it’s dropped, really, in 90 years. Just so you know, you saw that chart. For more than a century, Wall street has been provoked, has been proven moneymaker, has been a proven moneymaker that’s outpaced the likes of commodities, housing and bonds on an annualized return basis.

But when examined over shorter periods, the stock market becomes highly unpredictable. With Wall street being whipsawed, investors are looking to a variety of economic data points and predictive indicators to potentially get an edge on deciphering which direction the Dow Jones S and P 500 and Nasdaq composite will go next. While there’s no such thing as a foolproof indicator that can, with concrete accuracy, forecast directional moves in stocks, there are a handful of economic tools that have exceptionally strong correlative track records to directional moves for the major stock indexes.

One indicator is doing something truly historic at the moment is the US money supply. Now, this hasn’t happened, they said, since 1933, and it may pretend a big move coming for stocks, but it also, what they’re not talking about will have a big impact on housing. Why? See, as m two, money is drained out of the banking system and it’s coming out fast, that’s less money that the banks have in deposits to be able to loan out in mortgages.

And to give you an idea, I don’t remember the ratio right now, guys. Ladies and gentlemen, remind me down below, for fractional reserve lending, for every dollar a bank takes in deposits, I’m pretty sure it’s able to lend out 90% as of today. Ninety cents. Ninety cents of that one dollars for. No, that’s capital reserve ratios. It’s more than the dollar. That’s right. So for every $1, it gets to loan out $9 in mortgages.

Sorry. Idiot. I’m running backwards. So for every dollar it puts in deposits, it can loan out nine times that much. So you can see, because of fractional reserve lending, which is, quite frankly, theft, because if everybody calls in their money right now, it’s not in your bank. I hope you know that. That’s why it’s very important to keep your loan balances under the FDIC $250,000 threshold. And if you got more than that, you should go open up in our bank and you should make sure that your account is insured by FDIC, which most accounts actually aren’t out there.

Insured. Okay. Even the FDIC admitted it when they walked into Silicon Valley bank. They said 80% of these accounts aren’t even insurable. They went ahead and did it because there was a massive crisis going on this spring. But just remember, the massive cris for the Great Recession actually happened in 2005. And it wasn’t until 2008 that all the Fools figured it out and it was too late. They didn’t get to take advantage.

So if you want to take advantage to this, you start investing yourself right now, start getting out of debt and getting ready for this. But it says here the US money supply has. Oh, so again with the banks. Sorry. When people are pulling money out of the banks, they don’t have that much money now to lend for mortgages, for credit cards, for things like that. So what happens is the amount of money shrinks and so it is very hard to go get money.

Well, the housing market has been built up by mortgages, by a bubble, by lending. So if less people, and I’m going to say right now, the fools, are rushing into the housing market. There are deals every day, but very savvy investors know how to find the deals. The average Joe just doesn’t know how to find the deals. They usually get emotionally spent. Get into a market and they overpay.

They’re too emotionally involved in that deal and it’s not purchased properly. That’s why I want to start teaching people how to buy real estate properly. They’re speculators, not investors. Right? So as there are less loans out there, that means there are less buyers, which means sellers have to always sell. There’s always going to be a seller out there. Always. But right now we’re in a very tight market with selling, just like we saw in 2006, 2007, where there are sellers out there but no buyers.

Buyers do not want to buy the market. And inventory is stacking up. Inventory is really going to increase coming into this spring and summertime in 2024. So if you’re not ready for this, you don’t have your balance sheet set up and everything ready to go, you’re going to miss this opportunity. So it says here the US money supply has four measurement standards of which m one. I’ve already explained all that the m one, m two, it shows right here, and this is a chart from Y charts.

Well, let me go back here, shows m two money supply in the last, since 1960. And you could see this drop, look at that drop right there since 1960. Look at little spikes down, nothing like this, nothing like that. Now it says the significant of this decline is twofold. To start, there are economic implications of having less capital in circulation with core inflation still well above historic norms.

It’s still there like the Federal Reserve has not gotten in front of. They keep changing the metrics, how they measure this. But hey, type four, if you’ve gone to the grocery store just this last week and you’re still seeing rising prices in the grocery store, I’m curious how many people are there. The point being is that if you still see rising prices, that means the Fed hasn’t got in control.

So if they’re sitting there and pretending hey, you know what, we’re going to pencil in a couple rate cuts to get a couple fools in. They still haven’t gotten in control of inflation. So if they do lower rates significantly enough to cause people to go in and buy more things, because most people suffer from normalcy bias, whatever’s happening today, they’ve got their blinders on. They’re going to rush in and cause another little burst in inflation.

Then the Fed is going to get involved and you’re going to watch mortgage rates and interest rates do something that you have never seen. As a matter of fact, if you weren’t an investor in 19, 80, 81, you have no concept of what’s coming. Paul Volcker spiked those rates real nice. You know what’s interesting is that on a percentage basis Paul Volcker didn’t do anything that impressive. Jerome Powell actually did more of a percentage rise in interest rates relative to where they started at than Paul Volcker in 1980.

And you haven’t seen anything yet. This time is absolutely different. Now it says here. The second thing to note about the four previous notable dips in m two is that they all led to deflationary depressions with double digit unemployment rates. Keep in mind that the Federal Reserve didn’t exist in 1878 or 1893. And the Fed board of governors has a much better understanding of how their monetary tools can strengthen the US economy today than they did a century ago.

And please do not think for 1 second that the Fed is data driven. They know exactly what they are doing. They’re not waiting till the last minute based off of data to know them raising rates. What it is going to do. This is not a joke. I want as many people ready for this. Honestly, in 2006, when I was warning, and I’m going to get ready for this chart that I’m about to show you right now, in 2006, when I had sold all my homes and I didn’t have a lot of homes, I only had 14 at one time.

Right, 14 total. I’d done some other fix and flips and things like that, but mainly 14. I didn’t have a mentor that pushed me. I didn’t know anybody that had more homes than me. I wish I did. But back then, still, Internet was out and about. There wasn’t social media. There was no way to find mentors, people to learn from. Yes, I had books and I’d read the books, but books are only so much.

You need to be able to really be able to be around the right type of people to give you that boost of confidence. Hey, I did it. You can do it. You should be able to do more than me. And so many people, I warned, and all of those people are now done. Yeah, they have homes. They’ve already been divorced because their family split up during the great recession.

Because for married couples, what is it, 90% or something like that, the reason why people get divorced is over finances. They were lambasted. They lost everything. Might as well get split up right now. Children aren’t at the level they should have been because their families are torn apart. They had no clue. But I warned all of them, all the people that I knew, as many as I could, and this one, this time is so much more serious.

We have a country that is completely divided because the media is trying to divide us. Type five, if you agree with that. The media wants us scared. The media wants us leaning on the government. We’ve already seen so many people in the media going, yeah, you’re supposed to get the news from us, nobody else. Well, I’m here to tell you I lived through the great recession. I was an investor way before it, and I got out by the skin of my teeth.

And to be honest with you, I wish that I was even more prepared because I was able to make hundreds and hundreds of thousands of dollars in my side hustles, taking advantage of the fact that so many people were lambasted, they were moving, and they’re like, I mean, I remember homes, people just leaving and leaving, all their stuff leaving. We don’t care. We’re done. They were just mentally shot.

And they’re like, well, do you want to sell this? You could have it. I’d walk through and just clean house. Clean house and go sell it on eBay or go sell it on Craigslist. We were making a killing. We were buying some tractors, trailers, palm trees. We were doing everything because business. I remember going, when I went and had a palm tree farm in 2009, going down and picking up truckloads of palm trees and driving by bonfires where they were loading all, throwing the palm trees in bonfires.

And I said, what are you guys doing? Like, we can’t sell them. It’s more expensive to pay the water. They were that messed up in their mind. And I’m like trying to give them examples. Oh, no, you could be. And they’re like, son, you have no clue. You don’t know what it’s like. And it’s like, wow. So now this one, this time is so much worse, but at the same time, it’s the largest opportunity I’ve ever seen in my life.

So I want to get a nation ready. Type seven. If you’re one of those people that want to get ready, you don’t know how to, but you want to do something. So many people, I’ve actually met some of my students that have emailed me and they said I didn’t even have the confidence to buy my own home. I took your course. I’m now in a home and my payment is lower than the rent.

I know it sounds crazy, but it’s actually possible. I teach people how to buy things, right? Because so many people get talked into a home by a real estate agent or a loan broker. Hey, I know a lot of amazing real estate agents that are right now, especially the ones that have taken the course and emailed me too, and said, holy cow, I could feel these things. But I wasn’t able to put it into perspective until you taught me.

And I’m like, what’s that kind of education worth? And now they’re like telling all their clients, just wait, just wait, or we’re going to find you the right place. Just be patient. We want to set you up for success. But those people are in homes right now. I have students that are already in duplexes. They’re living in one side, they’re renting out the other, and they’re foaming at the mouth for these prices to come down.

But they still have found properties in the right places, in the right purchase points to be able to buy. Now for one year, I put out everything. And I’m about to share this chart with you because this is what you are not being told. There are, quote, unquote professionals like the National association of Realtors, that guy Lawrence Young. Here, check this out. Lawrence Young, chief economist, you just so you know, there’s not like just one, there’s a handful of head economists, chief economists, whatever, and then there’s lower end economists, right? I got a comment the other day from a real estate agent that just was office rocker stupid, because when you say something stupid, I’m going to call it out.

And I said, lawrence Young has been a head economist for the National association of Realtors since early two thousand s, and he’s been completely wrong, consistently wrong. As a matter of fact, in 2006, he was saying, stop worrying about the housing market. It’s going to go up. It’s going to go up. He was totally dead wrong. And just so you know, head economists, there’s lots of them over there.

There’s a handful of them over at the National association of Realtors. And he goes, you are so wrong. He wasn’t even working for them. I did a quick Google search and just highlighted and put it in there and said, do you stop watching my channel? You’re just not that bright. And it says, Lawrence Young got hired as a lead economist in the year 2000. He ranked up in 2007 after being dead wrong.

He was a head economist then he ranked up to a chief in 2007. He’s still dead wrong. These people are trying to tell you that things are going up. This is what the Federal Reserve says, not the government, because they’re different. This is a chart dating back to, when is it, 1970? And you could see what happened during the great Recession. The great Recession, all those people lost homes.

It built up and then it came down to here and then it built up and it came down a little bit down to here. Now, this date is very important. Why is that date important? That’s 2018. That’s 2016. I’ve got it tapped on. That’s 2018. We’re sorry, hold on. Come on now. 2018 is the last time we saw the high in real estate prices and they dipped down because the economy was actually headed downwards.

We were heading into a recession and the government knew this and the Federal Reserve knew this and they needed something to stimulate. Well, lo and behold, look what happened. Something came out of China and it allowed them to extend the money supply and pump a ton of money in, just like what happened in 1921. Sorry, the depression of 1920. They pumped money and for ten years they ran it up.

Well, this is what they did. Now this is the housing market. Housing market chart. Look at where we are right now. This is the median sales price of homes in the nation. It spiked and now it’s coming down. People tell me all the time, ninja, you don’t know. They’re not going down to my house. I’ve already done those videos. I’ve already done them. Yeah, they’re going down. Don’t worry.

Don’t you worry. Maybe not the ones you look at because they’re super cheap and that’s where your mind’s at. But see, as for me, in my business, I look at the entire picture, and the first market in a real estate market that tops and drops is not only the hottest markets in the country, but the highest priced homes. That’s your first indicator. I go through this in the course.

If you want to learn it, there’s links down below, but my point being is that then it drops and then it starts to affect all these. Now, the median home price for all those that would say it’s not dropping, look, it’s hitting all time highs in these cities. I’m going to repeat it. The national median sales price of houses sold in the United States from the Federal Reserve of St.

Louis. They are the ones that keep this data. It has topped and it is dropping. And if you look at that drop right over here, in comparison to what happened in 2018 and what happened in 2008, I’m going to tell you right now, you ain’t seen nothing yet. There’s going to be a little jump, a little tiny pop that won’t even come near to the all time high little pop, and the media is going to run with it and they’re going to get a bunch of fools in there.

And I’ve warned my students about that. There’s course lessons on that course about that. Beware. You have to have this, this and this in line to know that we’re in the true collapse. You have to have rates dropping at the same time as this, this, and this at the same time to know that this is the real drop. This is the one, this is the big one, and we’re nowhere near that yet.

That’s happening in the end of 2024, 2025. There are deals to be made right now. There are deals, but if you’re not buying right? And if you’re putting a ton down, I don’t ever want someone walking up to me and say, yeah, I’m a real estate investor. I’m like, how much do you put down on your homes? 20%? I’m like, get away from me. You don’t know how to invest.

A real investor puts in the minimum amount of money, knows exactly when they’re going to pull it back out. And that thing’s cash flowing on day one. That’s an investor. Anyone else is a speculator. If you want to learn how to be an investor, you want to start thinking like the elite. And you don’t want the banks buying these up, but you want to buy up these homes.

The links are down below. It’s the last day it’s ever available that I’m ever going to talk about this again. There will be some live links out there on other videos because it would just be dumb if I can’t take down all those videos. But I’ll tell you what, after this, I’m not advertising this again. We’re moving the course much higher and we’ll see who’s right. Type ten.

If you’re getting ready for this and you know it’s coming, you can feel it in your bones. You’re excited. Type eleven. If you think I’m nuts, it’s totally cool. We can still be friends it but I’ll guarantee one thing. Well, no, this is all I would say. Bet against me and everyone right now. Type in ten. Bet against us. The economic ninja. Oh, I’m going over to the other channel, real estate ninja, because I have another good story to share with you if you guys want to move over.

Real estate ninja I’ll be live in less than ten minutes. I’m out. .