Billionaire Investors say Crash is coming: Warning Clients ‘It’s Time to Hide Cash under the Mattress’

This week, a number of Billionaire Investors have made some dire warnings about our economy; one top investor actually told his clients that “It’s Time to Hide Cash under the Mattress”.

Cash under the mattress

Ian Spreadbury, one of Britain’s most senior fund managers, took the unprecedented step of warning his clients that it may be time to start hiding money under their mattresses. He warned that a “systemic event” could soon rock the markets, possibly similar in magnitude to the financial crisis of 2008.

He told his clients that the best strategy to deal with what he sees coming is for investors to spread their money widely into different assets, including gold and silver, as well as cash in savings accounts. But he went even further than most, suggesting it was time to hold and hide some “physical cash”.

Just the tip of the Iceberg?

Many of the world’s top investors are starting to hoard gold, silver and cash. Some are even jumping on the preparedness bandwagon, as we pointed out last week.

Over the last couple of years, the world’s wealthiest have been rushing to buy doomsday bunkers, panic rooms and futuristic state-of-the-art security systems. Companies across the globe are popping up, dedicated to building elaborate safe rooms and bunkers for wealthy individuals.

In Germany, one company has even built a $1billion bunker complex specifically designed for the elite.

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Billionaire Investor Carl Icahn warns investors, Markets ‘extremely overheated,’ especially in junk bonds

Carl Icahn warned investors on Wednesday that he believes the market is “extremely overheated—especially high-yield bonds.”

“I think the public is walking into a trap again as they did in 2007,” the activist investor told CNBC’s “Fast Money Halftime Report.” “I think it’s almost the duty of well-respected investors, like myself I hope, to warn people, to tell people, that really you are making errors.”

Just like in the lead up to the 2008 global financial meltdown, the warning signs are everywhere. Even more troubling, is the fact that nothing was ever done to fix the problems that caused the 2008 debacle.

Icahn compared the current market situation what was happening right before 2008, when mortgage-backed securities were being widely sold. “It’s almost deja vu,” he said. Companies are selling at huge multiples and reporting earnings that are “sort of fudged” due to various accounting methods, he said.

This is similar to what Billionaire Investor Mark Cuban warned about last month when he claimed the tech market was being artificially inflated by junk companies who had no chance of ever making a profit.

“Small individual investors are putting their money into apps with no chance of getting their money back,” the Dallas Mavericks owner and “Shark Tank” investor told CNBC

Financial Institutions back to same Behaviors that Caused 2008 Crisis.

U.S. Bank

A survey of more than 1,200 financial service professionals in the United States and United Kingdom, conducted by Labaton Sucharow law firm and the University of Notre Dame, shows that the unethical behavior that caused the 2008 crisis is even worse now.

The study Found:

  • 47 percent of total respondents feel it is likely that their competitors have engaged in illegal or unethical behavior to gain an edge.
  • One out of every 10 admitted to signing or being asked to sign a confidentiality agreement that specifically prohibits reporting potential illegal or unethical activities to law enforcement.
  • Almost 20 percent of respondents think they must engage in illegal or unethical activity to succeed.
  • A total of 32 percent believe compensation structures pressure employees to compromise ethical standards or violate the law.
  • A total of 27 percent don’t think the industry puts clients’ interests first.
  • 22 percent of respondents say they have observed or have first-hand knowledge of actual wrongdoing in the workplace.”

4 Comments

  1. Frank Johnson
    June 24, 2015 at 5:22 pm

    Our scumbag government could easily declare a bank holiday for days or weeks leaving many people unable to buy food or gas. I’m keeping some paper cash and junk silver coins around the house, in addition to extra food and water, just in case. These crooks may manage to wipe out my savings and retirement but at least I won’t starve; right away anyway.

    • Joe
      June 24, 2015 at 5:53 pm

      I agree, and that’s one of the reasons I love this site. You see all these other survival sites advising against having paper cash but you are so right on about the bank holiday. Yes, longterm cash may lose all value but in the beginning phases of the collapse it is going to be what everyone is trying to get, especially if they shut down electronic payments or cash withdrawals.

  2. Rob
    June 24, 2015 at 6:22 pm

    I read a report a few weeks back about the warning signs of governments doing just that under the guise of “New Software Installation” in 2016.
    The report stated that when the government and banks start saying this then you have three days to get your cash out and run for the hills.

  3. fossilknight
    June 27, 2015 at 12:27 pm

    I’m glad you linked the actual survey to the article. Banks and hospitals are the two places that common people have to much trust in.

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