New Centurys Collapse: A Warning Sign of Economic Crisis to Come

[] [View in browser]( [View in browser]( [] APR 12 2023 New Century's Collapse: A Warning Sign of Economic Crisis to Come [] [] DON YOCHAM Bank Failures Sound Alarm for Upcoming Economic Turmoil I’m sure most of you have heard of [The Big Short]( the Michael Lewis book that detailed how Michael Burry made massive profits during the Great Financial Crisis (GFC). The key trade - the one that made Michael Burry’s name - was a short on the mortgages underwritten by [New Century Financial Corporation](. New Century was the poster child of subprime mortgage lending to NINJA borrowers (No Income, No Job, No Assets) that characterized the housing bubble of 2003 to 2006. Burry visited the company, saw what a clown CEO Brad Morrice was - remember all the guys that suddenly went from selling used cars to selling home loans during that time - and figured any loan Brad made was bound to fail. So he backed up the truck on credit default swaps on New Century's mortgage-backed securities and waited until it all fell apart. And it fell apart, netting Burry $725 million when all was said and done. But, the New Century failure that followed wasn’t a result of the GFC. It filed for bankruptcy in April of 2007. Bear Stearns didn’t collapse for another year, and Lehman a few months later still. No, New Century was a herald just like the recent bank failures are sounding the alarm of the massive economic crisis heading our way soon. It could take a year. But until then, just like in 2007, you can expect reassuring statements for politicians, their advisors, Federal Reserve officials, etc. You can also expect a lot of pollyannaish talk from financial industry CEOs convincing you to keep your money in stocks. At least right up until they panic publicly with who knows what kind of [emergency bailout response](. So, don’t get lulled to sleep. The lack of action on the surface doesn’t mean that bombs aren’t ticking away below. And you might want to back up the truck and dump any stocks you don’t want to be stuck with for the next few years. Take What the Markets Give You. [] [] [] JEFFRY TURNMIRE’S CHART OF THE WEEK A Bullish Bank Bet HSBC made a rally in February 2023 right up into resistance formed by the prior high in February 2022. Then HSBC made a beautiful retrace right to my Roadmap line - The big orange line moving across the chart. [] This sets HSBC up for a nice entry on a move above $37.50 for a target at $41. [] Don't jump the setup early, because the whole pattern breaks down if HSBC drops down below $32. Have a great week! Jeffry [] [] TBUZ This could be the most powerful trading window right now! [LIVE EVENT] Join me at 8pm ET tonight. Because I want to show you what I believe to be the most powerful window in the market. And it’s open now. This window has the best of both worlds - fast AND effective. With target returns up to 10%, 20% even 50% in just 72 hours! Better yet, this window opens up nearly every single day. I'm getting ready to place another trade using this technique, [so join me HERE at 8pm tonight and learn how you can get in on it too](. See you on the flip side, TBUZ P.S.: And of course, we’ll be covering everything you need to know about the markets as always on Wednesdays — [so join me LIVE right here](. See you tonight. [] [] [] APR 12 2023 New Century's Collapse: A Warning Sign of Economic Crisis to Come [] [] DON YOCHAM Bank Failures Sound Alarm for Upcoming Economic Turmoil I’m sure most of you have heard of [The Big Short]( the Michael Lewis book that detailed how Michael Burry made massive profits during the Great Financial Crisis (GFC). The key trade - the one that made Michael Burry’s name - was a short on the mortgages underwritten by [New Century Financial Corporation](. New Century was the poster child of subprime mortgage lending to NINJA borrowers (No Income, No Job, No Assets) that characterized the housing bubble of 2003 to 2006. Burry visited the company, saw what a clown CEO Brad Morrice was - remember all the guys that suddenly went from selling used cars to selling home loans during that time - and figured any loan Brad made was bound to fail. So he backed up the truck on credit default swaps on New Century's mortgage-backed securities and waited until it all fell apart. And it fell apart, netting Burry $725 million when all was said and done. But, the New Century failure that followed wasn’t a result of the GFC. It filed for bankruptcy in April of 2007. Bear Stearns didn’t collapse for another year, and Lehman a few months later still. No, New Century was a herald just like the recent bank failures are sounding the alarm of the massive economic crisis heading our way soon. It could take a year. But until then, just like in 2007, you can expect reassuring statements for politicians, their advisors, Federal Reserve officials, etc. You can also expect a lot of pollyannaish talk from financial industry CEOs convincing you to keep your money in stocks. At least right up until they panic publicly with who knows what kind of [emergency bailout response](. So, don’t get lulled to sleep. The lack of action on the surface doesn’t mean that bombs aren’t ticking away below. And you might want to back up the truck and dump any stocks you don’t want to be stuck with for the next few years. Take What the Markets Give You. [] [] [] JEFFRY TURNMIRE’S CHART OF THE WEEK A Bullish Bank Bet HSBC made a rally in February 2023 right up into resistance formed by the prior high in February 2022. Then HSBC made a beautiful retrace right to my Roadmap line - The big orange line moving across the chart. [] This sets HSBC up for a nice entry on a move above $37.50 for a target at $41. [] Don't jump the setup early, because the whole pattern breaks down if HSBC drops down below $32. Have a great week! Jeffry [] [] TBUZ This could be the most powerful trading window right now! [LIVE EVENT] Join me at 8pm ET tonight. Because I want to show you what I believe to be the most powerful window in the market. And it’s open now. This window has the best of both worlds - fast AND effective. With target returns up to 10%, 20% even 50% in just 72 hours! Better yet, this window opens up nearly every single day. I'm getting ready to place another trade using this technique, [so join me HERE at 8pm tonight and learn how you can get in on it too](. See you on the flip side, TBUZ P.S.: And of course, we’ll be covering everything you need to know about the markets as always on Wednesdays — [so join me LIVE right here](. See you tonight. [] [] [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 495 Town Plaza | Ponte Vedra | FL | 32081 [Prosperity Pub]( [] ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Prosperity Pub provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Prosperity Pub are for your informational purposes only. Neither Prosperity Pub nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk. DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Prosperity Pub is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit [( for our full Terms and Conditions. [Unsubscribe]( This email was sent to {EMAIL} by Prosperity Pub 495 Town Plaza | Ponte Vedra | FL | 32081 [Prosperity Pub](