No one believed Porter Stansberry seven years ago. As head of one of America’s largest independent financial research firms, Mr. Stansberry’s work back in 2008 led him to a bold, but worrisome, conclusion: That the world’s largest mortgage bankers–Fannie Mae and Freddie Mac, which at the time were responsible for nearly 50% of all the mortgages in America–would soon go bankrupt.
In fact, in June of 2008, while their stock prices were still trading at well over $20 per share, Stansberry published a report to his customers titled: “Fannie Mae and Freddie Mac Are Going to Zero.”Inside this report, Stansberry explained: “For those of you who don’t work in the financial industry, it might be hard for you to immediately grasp what’s so dangerous about the extreme amount of leverage employed by Fannie Mae and Freddie Mac. Let me explain exactly what Fannie and Freddie do and why they’re in so much jeopardy…” We all know what happened next.
Both agencies went bust—and if not for a bailout from the Federal Government, both would have declared bankruptcy. Barron’s—America’s second biggest financial newspaper—even wrote a story about Mr. Stansberry’s accurate prediction short, and called it “remarkably prescient.”
Over the years, Mr. Stansberry has made a name for himself by accurately predicting the biggest and most important collapses in America. A few of the others he’s accurately identified well in advance include: General Motors, General Growth Property (America’s biggest mall owner), D.R. Horton (a homebuilder), and Gannett newspapers, to name just a few. Stansberry also predicted the recent collapse of oil and natural gas prices as early as 2010, when he wrote a report titled: “Peak Oil is a Flat Lie.” Well, now Mr. Stansberry has issued another fascinating warning, about a new and looming bankruptcy.