Fed insider gives advice on how to prepare for a financial crash

Danielle DiMartino Booth, author of “Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America,” talked about what Americans should do to prepare for a financial crash on Friday’s “The Glenn Beck Radio Program.”

Formerly a Federal Reserve analyst, Booth correctly predicted the housing market crash of 2008 as detailed in “Fed Up.” Her warning for 2017 is to beware of “diversification” and investments in the stock market when central banks are keeping interest rates artificially low.

Glenn Beck asked if people should take their money out of banks.

“I don’t think we’re there. But would I take my money out of the casino [the stock market]? Yes,” Booth said. “And the bond market. People do not understand how as overvalued as stocks are; bonds are much more overvalued.”

She advised Americans to keep their money in a traditional bank with a steady rate of return instead of risking it with stocks and bonds. One benefit of larger banks is the army of lobbyists ready to fight for them if something goes wrong.

“I think the world as we know it will end if one of these gigantic banks goes away. Do you really see these lobbyists standing still for that?” Booth asked.

“No,” Glenn acknowledged.

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