Why Dodd Frank was Always a ‘Dead Man Walking’

In today’s Money Morning…the obstacle presented by the Dodd-Frank Act…why its days were always numbered…the stage is now set for the biggest boom of all time…and more…

EDITOR’S NOTE: Today is the day we are finally releasing this Phil Anderson Forecast Video Showcase. If you care about where we are in the markets now, and what a historical Grand Cycle predicts for the years ahead, you’ll find it riveting viewing. Anderson has predicted every major twist and turn in the markets since 2000. That includes, most recently, the stock market cool-off and subsequent rebound that occurred last year. When will the next ‘cool-off’ be? And will be it a mega-crash that many predict? Or will there be yet another rebound to greater highs? All is revealed in this video! Below, Terence Duffy of the Phil Anderson’s Cycles, Trends and Forecasts team looks at another forecast Phil has gotten bang on…to do with Donald Trump and Dodd Frank…


As you’ll see if you view this free, brand-new video presentation that we’ve just put out…a huge boom in property prices is about to hit the world. Be prepared to take advantage of it.

I know that sounds silly. Given almost every headline you read tells you about a property bubble and the impending collapse.

But there are so many ways for property to go higher from here. Financial deregulation is one.

Less regulation allows the banks to lend out more and with less constraints, so lending standards loosen. Easier credit, in turn, allows customers to borrow more to bid up the price of real estate. It’s a self-perpetuating cycle, which feeds on itself.

Towards the peak, a frenzy in land speculation eventually sends property prices right over the top. The certain result is a financial meltdown, such as we saw in 2008.

But there’s been a problem in the way this scenario plays out. An obstacle.

And that problem, that obstacle in the way, has always been Dodd Frank.

Land prices can’t go completely over the top with tight financial regulations in place.

Without loose regulations, without loose credit, we can’t get to the point where ‘no money down’ becomes the order of the day, and things go right over the top.

Dodd Frank was born out of the last financial crisis in 2008. Those reforms placed major constraints on the banks. Those constraints were put in place to better regulate the banks and ensure ‘another financial panic could never happen again’.

Named after the sponsors of the legislation, Christopher Dodd and Barney Frank, it became law in 2010.

And in all the noise, scandal and personnel changes that mark the first months of the Trump presidency, Dodd Frank is quietly being killed off.

Trump told a group of chief executives last month that his administration was totally revamping this Wall Street reform and may even do away with it altogether.

This shouldn’t be something that comes out as a complete surprise. Dodd Frank’s days were always numbered.

In June last year, long before Trump entered the White House, in an update emailed to subscribers, Cycles, Trends and Forecasts predicted how events might play out.

We put on record then how Donald Trump significantly increased his chances of ascending to the US presidency courtesy of the US banks.

We detailed how the Chairman of the US House Financial Services Committee, Jeb Hensarling, put together measures to specifically help US banks by dismantling the Dodd-Frank Act.

Trump then endorsed these measures and vowed to ‘pull apart’ the act.

This is how history repeats. Banks fund supportive politicians to their cause, and those politicians usually end up winning.

President Trump has reversed his position on a range of issues, but I guarantee Dodd Frank is one position that won’t change.

For the real estate cycle to repeat, Dodd Frank had to go.

History shows you that events happen to make the real estate cycle turn, and not the other way around. This is why we could forecast such events well in advance.

The new president has vowed to cut taxes and increase spending on infrastructure, to ‘Make America Great Again’.

The gains from these measures will only send property prices higher.

The mainstream press, economists and investment writers mostly fail to understand this. You have to stop reading them.

But while tax cuts and infrastructure spending send real estate higher, land prices can’t go completely over the top at the peak without the full cooperation of the banks.

That’s why Dodd Frank was always a ‘dead man walking’.

And with Dodd Frank out the way, the stage is now set for this real estate cycle to be the biggest of all time.

Get a good seat, sit back and watch as this real estate cycle slowly but surely starts to build.

Credit is starting to loosen; this will see the US housing market start moving steadily higher.

Banks likewise will see higher profit margins from more lending and larger mortgages.

Then add into that mix the massive infrastructure that is being planned here, in the US and throughout the world.

Alone, Beijing’s trillion-dollar plans to recreate Marco Polo’s ancient ‘Silk Road’ — connecting China with 60 other countries in Asia, Europe, the Middle East and North Africa, with high-speed rail, power plants, pipelines, ports, telecommunications and airports — is of a scale we’ve never seen before.

All this infrastructure will only send land prices soaring wherever it goes in.

This cycle especially promises so many gains from technology. It’s already happening now, with new fuel sources, cheaper energy, driverless cars, incredible connectivity and 3D printing. Never before have we had so much potential for wealth creation. You know now where those gains will end up.

So forget about any imminent collapse reported in the mainstream press, and educate yourself on how to take advantage of the biggest boom of all time, which is still ahead of us.

Dodd Frank had to go; the real estate cycle demanded it. This is history simply repeating before your eyes.

This cycle is on target to dwarf all others. To find out why, and how to invest to great advantage with this cycle in mind, watch this brand-new forecast tutorial, which premieres today.


Terence Duffy,
Lead Researcher, Cycles, Trends and Forecasts

Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come.

Money Morning Australia