Over the last several months, markets of all types moved in lock-step (either up or down) based on weakness in the US Dollar Index.

During that period we continuously warned clients that the BAM Model was signaling an imminent stock market crash based on a “melt-up” in the US Dollar Index.

We also warned clients that this fairly new trading dynamic (we first identified it back in 2007 with relation to the YEN Carry Trade) whereby formerly diversified markets now move in lock-step, looked to us to be the single most dangerous dynamic we’ve seen in our years of following markets.

The idea that a major train-wreck based on a mechanical unwinding of a single (crowded) trade could crash AND melt-up markets across the globe is simply a disaster waiting to happen.

Today, Nouriel Roubini, Chairman, RGE Monitor, shares a similar forecast with us based on his fundamental view of the markets.

Click HERE for full story on CNBC

[caption id="attachment_758" align="alignnone" width="150" caption="Nouriel Roubini - Chairman, RGE Monitor"][/caption]

Of course, if this does occur as our model is predicting, we’re going to hear the same old tired excuses from the masters of the financial universe.

In our opinion, we simply have too much money being controlled by too few “brains” but since this pattern of boom and bust is destine to repeat over the coming years, we’ll simply do the best we can to protect our followers and allow subscribers to make money from these apparently predictable blunders.