Why Losing Your Home May Be Closer Than You Think (Uncut) 03-11-2025

MARKETS CRASHING: Why Losing Your Home May Be Closer Than You Think

I know you’re all feeling it. There is so much happening in the gold market right now. We talk of revaluations, uncertainty, shifting trends, even talk about auditing for NOX.

It almost feels as if something big is really coming. So if you have questions or concerns about how this could impact you, reach out to our team. It’s free and they’ll be happy to explain the situation and help you out and prepare.

So scan the QR code right here on the screen or there’s a link below in the video description. Now let’s get to today’s video. My guest today says that while economists are arguing about the dangers of inflation, he says we should be worried about deflationary pressures coming into the economic system here.

And he warns that more economic pain is ahead. The S&P is just getting started. Joining me today is Bert Domen of Domen Capital Research.

Bert, welcome back to the show. Always great to be with you. Yeah, I love being with you, Daniela.

You always have very good questions and you have a terrific viewership, you know, so thank you. I’d like to be with you. Thank you.

Thank you. I do have the best viewers and I’m grateful for them and for great guests like yourself. And I read with great interest your latest edition of the Wellington Letter, The Great Unwind.

You say the pressure that we’re seeing in the stock market is just the beginning. I mean, you have a pretty dire forecast for what’s ahead here, Bert. Well, it’s only dire for the, let’s say, medium term.

Okay. I mean, when you make an omelet, you have to break some eggs. And now they’re breaking a lot of eggs in Washington.

All the corruption is going to be minimized. You know, they’re not going to wipe it out. Corruption has been the way of government since the dawn of civilization.

You know, you read history books for thousands of years. Corruption has been always the demise of a good country. You know, like the Roman Empire.

It fell in 416 AD, I think it was, depending on how you count it, because of all the corruption. You know, senators would say, yeah, I’ll give you a cow if you vote for me. You know, corruption is always there.

And now we have an effort to clean that up, and that is going to be very painful for some sectors for the short term. Well, I mean, of course, you point to what we saw on February 21st, $927 billion in the market wiped off in just one day. But you say it’s going to get worse than that.

I mean, what do you see here? Yeah, this is just the start. And the reason for that has nothing to do with all the metrics that you always see here on TV, like earnings and all of this BS. You know, it doesn’t matter.

And when there’s a giant wave of liquidation of stocks, highly leveraged stocks, and all the speculation that went along with that, like triple leverage ETFs, which are at an all time record high, you know, triple leverage, people have no idea. I’ve asked people, I said, why do you use the triple leverage? Do you know that if the Dow goes up 10%, the triple leverage will not go up 30%, unless it’s in one day, you know, but the markets go up and down. And so you’re always behind the curve in these things.

These are scams, but the greedy part time investor goes for those. So we have all this huge speculation, all with leverage. And I’ve been warning here for the last several months.

I said, if you have a margin account, you may lose your house. And people don’t realize that when you sign the margin agreement, they can come and get your house if you cannot meet the margin call in a few hours. Wow.

I mean, that was it. Daniela, after the 87 crash, we had a meeting, and we caught that crash on the button. At that time, we had managed accounts, and we were 77% in cash.

And some of the people, they said, what am I paying you for? To be money market funds, you know, and so on. And then came the crash down 22.6%, down in one day on the Dow Jones Industrials. And so it happened.

But it was because of the leverage that was implied in the futures markets. So you can catch these things if you know where to look. Everyone looks in the wrong direction.

They look at earnings. They look at dividends. They look at buybacks and all this stuff.

It doesn’t matter. This is going to be a liquidation. We’ve had the highest leverage in the history of the US.

And it takes a long time until all that leverage is taken out and stocks go down to their normal levels. Look at the Bitcoin now. I mean, it’s a speculative frenzy in a digital item.

You pay $100,000 a year a few weeks ago. You get a so-called Bitcoin. But it’s not a coin.

That’s really a fraud to call that a coin. All you get is a key. It’s a computer entry.

You get good money that you can buy as a down payment for a house or you buy yourself a new Mercedes. And they send you a number that says, yeah, you own this Bitcoin. Now, if that disappears, like we just had another hack, $1.5 billion of crypto was wiped out in the hack.

Where do you go to complain? Where do you go? Where’s the complaint department? Who do you go to? Nobody. Bert, I just want to focus on that before we move on. When you say they’re the real threat of losing your house and people don’t know where to look, I mean, what can people do to make sure that never happens? What’s the best way to protect yourself? Don’t use leverage.

Don’t use leverage ETFs. Don’t use naked options. There’s a difference between naked options, which is what the naive speculators do, and option strategies, where you have straddles and strangles and so on.

So you’re basically hedged. This is what professionals do. You don’t want to be on the buy side of an option, of a call option.

You want to be a seller. The professionals are sellers of options in order to capture the time premium. People are just not informed and they don’t want to take the effort on the internet.

There’s so much great information and podcasts and articles on the internet that shows you why these leverage ETFs are really dangerous. But nobody reads it. Oh, no, that’s too time consuming.

That might take me 20 minutes. I don’t have time for that. I’d rather lose all my money.

Does that make sense? Speaking about crypto, you mentioned it, and we’re speaking ahead of the White House Crypto Summit on March 7th. There’s talk of whether Bitcoin will be integrated into the U.S. financial strategy. What’s your take there? And would that cause you to change your opinion of Bitcoin? No.

According to U.S. law, only the U.S. Treasury can make money. And Bitcoin is private. It’s not U.S. government.

So at any time, you can wake up in the morning and the U.S. Treasury said, okay, all the cryptos are illegal currency, and suddenly they’re worth zero. That can potentially happen. People don’t know what they’re investing.

For example, Alibaba. I’ve written about Alibaba. It really had a very big gain recently.

It was basically a short covering, in our opinion. And so Alibaba, people who buy Alibaba don’t know that they’re not buying Alibaba China. They’re buying a Cayman Islands entity called the VIE that has zero assets, you know.

So this is what they’re buying. And this is not how you want to invest, in that the IPO did not disclose what the profit sharing. It only has a profit sharing agreement with Alibaba and China.

But nowhere is it written what that profit sharing is. Is it 1090? Is it 50-50? What is it? What is the profit sharing? Why didn’t that have to be disclosed on the IPO? We’re also, you know, you mentioned that economists, I mentioned this at the start, that economists are so focused on the futures of inflation, the future dangers of inflation. But you’re warning about deflationary pressures you see coming in.

Explain this to us, Bert. Yeah, it’s very simple. Where everybody’s looking, it’s usually the opposite of where they should be looking.

You know, if everybody’s expecting inflation, worried about inflation, you want to look at the other side, which is deflation. The masses are always wrong. That’s why the masses are poor.

They don’t have any money. And so you want to look at where nobody else is looking. And that’s what I’ve been doing for over half a century in the markets.

I started investing in the stock market when I was 22 years old. So that was a long time. And I’ve learned a lot.

I’m still learning. You say one of the reasons for last week’s market plunge, more sellers than buyers. You know, you mentioned that analysts and the media are calling the plunge a buying opportunity.

You say, quote, if Friday’s sell off would have been milder than the Thursday decline, we wouldn’t have objected. Why don’t you see it? Why couldn’t you make the argument this is the time to get into certain stocks? When you go into a bear market, in fact, a sharp bear market, I’m not saying it’s a long bear market. It’s going to be a relatively short bear market, but it’s going to be very, very sharp.

And that is what’s going to be the everybody says, oh, I can I can hold on for four years, you know, and go through the valley. No, at the bottom, people lose their courage and they sell at the bottom, which is the game plan of Wall Street. The average investor has to sell at the bargain with the insiders, then pick up the bar.

It’s human nature. The markets are a function of human emotions, nothing else, not of valuations. And we’ve been saying that here for the last year.

The biggest gains are in stocks that have no earnings or sky high ratios like five hundred or nine hundred to one, you know, like the cyber security stocks and so on. You know, can you imagine having buying a stock in a ratio of nine hundred or eight hundred and so on? And people think it’s a bargain. Well, if it’s a stock, I’ll give that example in the Wellington letter.

If a stock has a P or five hundred, they’ll take you five hundred years of earnings just to get your own money back. Well, I don’t think you’re going to live that long. Talk to me about what you’re seeing in the gold market, Burr.

I mean, we’re we’re still flirting with three thousand dollars an ounce here. Your take on the yellow metal. Well, I like gold, especially in this environment, but not for the near term.

OK, there’s going to be an upset again because a lot of money has gone into it. But this time, what we didn’t see is the the retail investor going into gold. OK, the retail investors stood out, which I consider a positive.

OK, and, you know, we made a forecast in nineteen eighty two and gold had gone up in nineteen eighty up to it was eight hundred dollars an ounce. And then it started dropping. We gave us all time sell signal at six hundred ninety four and dropped through that level said, OK, we’re in a bear market and gold now.

It’s going to go at least down to four hundred and probably lower than that. It went down to two fifty, actually. And we said the bear market and gold is going to last 20 years, according to our cycle study.

And for the cycle study, we had to go back to England for the first two hundred years because, you know, the U.S. didn’t have a gold market at that time. And so is that the interesting thing is that when your bull market is going to be followed by a 30 year bear market, that that bear market is going to be followed by a 30 year bull market. And we have no idea what would cause a 30 year bull market.

Well, the 20 year bull market ended in exactly 20 years later in the year 2000. That was the bottom. Nobody wanted to believe in nineteen eighty two when we said that because everybody was still waiting for three thousand dollars in gold.

And so 2001 is when this bull market started. So 30 years, if the cycles are still correct, could potentially last a year, 2030. And usually the final part of a bull market like that is the most rewarding one.

Yeah. Let’s face it. Gold is the only real money.

It cannot be manufactured by the printing press. But you say the retail investor has not showed up yet. Yes.

When do you think that changes? And then. Well, that’s going to be a warning signal this time. I love it that that the retail investor has not been caught up yet.

They seem to prefer the cryptos and all of that stuff. That’s really worthless. I mean, the intrinsic value of Bitcoin is zero.

1. And my forecast is that eventually all the cryptos will be selling at zero. Now, that’s a heck of a forecast.

A lot of people will shake their heads because they believe it’s. You include Bitcoin in that. Yes, of course.

Yeah. The only thing that could change is for some reason, the U.S. treasury would say, OK, we’re going to nationalize the Bitcoin. Now it’s going to be the Federal Reserve’s digital currency, central bank digital currency, CBDG.

And this is where we’re going internationally. All the central banks are in a pickle because the debt is too high. They cannot print enough money, which was the handicap in the German hyperinflation 1920s.

They didn’t have printing presses. But so with the computer, of course, you’re going to manufacture as much money as you want to. And so I think there’s always the danger that the U.S. treasury will say, no, it is an illegal currency and it cannot be accepted.

Yeah, but the counter argument, the counter argument, Bert, is with so much government interest in Bitcoin now, they would never let it go to zero. They have a vested interest. The government has no benefit from that.

Not yet. It competes with their own currency, which they are manufacturing. I mean, in the last several years, the Federal Reserve has manufactured nine trillion dollars of money out of thin air.

Nine trillion dollars. OK, yeah. They can’t do that with Bitcoin.

Bitcoin is limited. You know, by Bitcoin, what is it, 21 million or something like that? It’s limited of how much it can manufacture. The central banks do not want anything that’s limited.

Let’s talk about gold versus silver for a second here, or gold and silver, whichever you prefer, because while gold has been flourishing, you know, argued the past year, the past six months, silver has has has lagged. It’s nowhere near its all time highs of close to 50 dollars an ounce. Why? What do you think is happening in the silver space? Why this huge discrepancy now behind the gold price? Well, my opinion is that, you know, it’s because central banks are buying gold.

The central banks do not buy silver. So the biggest buyer has been central banks. The smaller retail investor is not there.

Retail investor like silver because it’s cheaper. But silver is an industrial metal. So if the economy does well, silver will do well.

OK, so it’s a matter of supply and demand. Gold is a matter of the central banks diversifying their asset base into something that has a permanent value. Just circling back on stocks, one point you strongly made in your latest edition is war industry stocks, which you feel could feel the effects of a great plunge.

Talk to me why you’re avoiding those right now. Or perhaps that’s a buying opportunity. I would not take the risk.

You know, I think investors have to have a different mindset instead of just focusing where I can make the most money. The first focus should be what has the lower risk. You know, risk control is so important.

You don’t want to lose your money. That’s much more important than losing an opportunity to make money. Bert, you say the war industry stocks could have a meaningful correction or worse.

Two factors that could cause these defense stocks to plunge, you mentioned existing wars, such as Middle East, Ukraine will diminish or be eliminated with the Trump policies. Trump has said he wants to be the president that ends wars. And Doge efforts to eliminate waste and corruption, you say, should have a huge effect on the money going into the pot of gold for the corrupt.

OK, let’s face it. The war industry, as I call it, that’s not defense. Who are we defending ourselves against? You know, is Cuba going to invade us? Is Ukraine going to invade us? No, it’s a war industry.

War industry is very profitable. And that’s why we always have had wars. OK, so this time we finally have a peace president.

And it’s the first time in many, many years. And it’s wonderful that we have somebody who’s more interested in making peace than in making a war. OK, the Zelensky type of people, they want war because it’s so profitable.

Can you imagine what their bank accounts must look like? You know, so the war industry has made huge amounts of money. You know, we all know the example of toilet seat cost $10,000, you know, and this kind of stuff. Yes.

Now we’re finding out, you know, the transgender operations in Honduras are being financed by U.S. taxpayers. You know, all this kind of stuff. Sesame Street in Iraq is being financed by the U.S. taxpayer, $20 million.

So all this graft of corruption is going to disappear. That’s going to reduce profits. And peace will also reduce profits.

You know, going back to your deflationary argument, that’s what we’re really going to be facing. What do you make of the arguments that the tariffs we’re facing and the tariff wars, the trade wars we’re currently in, will solely be inflationary? You know, everybody talks about the tariffs. Tariffs are inflationary.

No, they don’t even know. And it’s really terrible to hear Ph.D. economists saying that. In economics, you learn that inflation is a function of money, too much money.

OK, that’s what it is. It’s not price increases. Price increases are one of the effects of, you know, this huge money production.

But it’s not tariffs that raise prices because they add a tax to it. But let’s face it, these tariffs are wonderful. Trump, I think, said it.

It’s the most wonderful word in the English dictionary or something like that, because he has read history. If you read economic history of the world, until 1913, that is how all countries were financing at the expense of running a government. Tariffs was it.

There was no income tax. They didn’t know how to do an income tax because they didn’t have computers. Bert, I’m not sure if you caught that news item that Jerome Powell, Fed Chair Jerome Powell, had to make the statement that American bank accounts are safe despite the Trump administration shutdown of a consumer financial regulatory agency.

Senator Elizabeth Warren said, I’d be really worried about doing business with a giant bank when there’s no cop on the beat. She’s speaking about the major layoffs, the shutdown of the Financial Protection Bureau. So your thoughts on this? Do you think she has greater insights here? Do you think there’s any truth to this statement? How do you feel? Well, the CFPB, that’s what you’re talking about, is not a cop, okay? They’re totally asleep at the wheel.

I had an experience. I uncovered a mortgage servicing scam that included a merchant bank in Nigeria, okay? It was a big U.S. mortgage banking company, and it was actually a foreclosure note. They would, through false accounting, they would make people pass due, then they have a foreclosure notice, and the house would be foreclosed.

I looked it up on the internet, page after page after page. People complained the house was foreclosed. There was nothing they could do, and so on.

So I wrote the CFPB, or wrote it, was the head of it at that time. Never got an answer. I wrote the U.S. attorney in Chicago with a mortgage loan servicing company was Logan.

I wrote Moody, who followed Patti Bondi in Florida, because that’s where the CEO lived, and so on. I informed the FBI, etc., all these things I did to tell them there was a foreclosure mill in progress, and the next recession is going to see a huge number of foreclosures from these illegal operations. Nigeria, can you imagine? A U.S. company, the first thing when they take over your mortgage, they sell the mortgage to this Nigerian company, and you can imagine what happens after that.

So they would take that. I wrote Pocahontas about that, because she was one of the creators of the CFPB, and no answer. So none of these entities that are supposed to be protecting us answered my letters.

They had all the information, all the data, etc. Well, I’m glad I asked you that question, because you had great insights on that. Bert, finally, I mentioned the Fed.

We’re talking ahead of the next FOMC. Do you think we’ll see any surprises there on the interest rate front? No, I don’t think. I’ve said for decades that the setting of interest rates should not be part of what the Federal Reserve should do.

They can’t do it. They can’t even forecast the economy. They are totally inept at setting interest rates.

Instead of asking the weatherman, who is just forecasting the weather, to control the weather. Why? The weatherman cannot control the weather. The Federal Reserve cannot control interest rates at the proper levels.

The free market can do that much better. Market forces, demand, supply. That is what should be setting interest rates.

Let’s face it. The Fed created eight to nine trillion dollars over the last five years of money that didn’t exist and ran out of the heavens. The mission was, well, we have to control interest rates.

Well, what a terrible job they did. They kept interest rates, the Fed funds rate, at zero for several years. Why? Why? The natural level of interest rates is not zero percent.

Would you lend out your money at zero percent to anyone? Point made. Bert, just to wrap here, just final thoughts for viewers watching. What do you want them to know, given the current environment we’re living in? One takeaway.

You have to have professional advice. I personally spend about 12, 14 hours a day on this stuff. I don’t consider it work because I love it.

It’s a challenge, continuous challenge. So this is what I do. If I didn’t do this, I get pretty tired of playing golf or tennis every day.

So that’s what I do. And so this time you have to have, you know, there’s so much good information available, like our Wellington Letter. It’s about, you get two issues per month, usually 25 pages.

So it’s 50 pages in a month of thorough analysis, economic analysis. Totally many of the conclusions are opposite of what you see on TV. For example, the recession that is now, now they’re talking, oh, could we have a recession? Heck, the recession started a year ago.

It was just being hidden by all the false numbers coming out of Washington. The Bureau of Labor Statistics, we call it the Bureau of Lying Statistics, BLS. That’s what it is.

All their statistics were phony and we showed it. We didn’t just make that statement. We showed it.

Here from their own website, it showed like this one month they had a gain of 514,000 new jobs. We said that’s impossible for January, you know. So we went to their own website and on the website it showed the real number, two and a half million job losses that month.

That was January 2023. So they turned two and a half thousand, two and a half million job loss into 500,000 job gain. How? Like seasonal adjustments.

We never look at the headline numbers, the seasonally adjusted numbers. And the economists have asked the BLS, how do you do this seasonal adjustment? And they have never answered that question. They don’t even tell you.

But I know, I have a suspicion how they do it. The BLS calls the White House economists, said what number would you like to have for job gains? That’s it. Because their numbers are totally out.

And now you have to read the readjustment. All the false bullish numbers under Biden now have to be adjusted to reality. And that is what’s going to produce recessionary numbers.

The Atlanta Fed a few days ago issued numbers. Their bullish optimistic forecast for the first quarter this year was for a gain in GDP. Now they revised that to a loss.

And a few days later they revised the decline in GDP even further. So now we have a huge decline in their forecast number from positive growth to big negative growth. In the first quarter, that’s the quarter we are in.

So you have to look at these numbers, the real numbers. Not what they tell you on TV. And I always tell people, if you’re emotional and very easy to convince, don’t turn your TV on.

Unless it’s to listen to a podcast by Daniela. Yes, exactly. Just the Daniela Comboni show.

That’s the only thing people should be digesting. Thank you, Bert. It’s always great to speak with you.

We’ll see you real soon. Bert Doman of the Wellington Letter. Thank you.

And thank you all for watching. We’ll have more great content. Sign up at danielacomboni.com so you get all the alerts.

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