If you’ve been following mainstream financial analysts and pundits you’d think that the U.S. economy was booming again. Prices are near all time highs, people are living in fancy homes again, everyone has a brand new car, and official unemployment is below 5%.

Happy days are back again, just like back in the late 1920’s.

But Traders Choice analyst and “Fed Predictor” Gregory Mannarino has a different theory, and according to his latest alert, the situation with the U.S. economy and financial markets is critical:

Yesterday I explained that the fundamental factors that are supposed to support this market… along with the technical factors… are deteriorating. This morning we get yet another round of bad economic news. We find out that U.S. productivity is the lowest level in a year… you can just go on and on… we haven’t had one round of good economic news… I can’t remember when… It just keeps on coming.

And every single quarter we keep hearing from the mainstream financial channels, ‘oh, the next quarter is going to be better.’

And it just doesn’t happen.

…

We are all well aware of the fact that there is a massive amount of financial engineering going on right now that is supporting the stock market.

…

I think the Fed is in a lot of trouble here and it is going to have to act and introduce a new stimulus program… They’re not going to call it quantitative easing… but that’s exactly it is going to be… It is the only thing they can do to support this market…

Or… they’re going to let it all fall.

Watch Greg Mannarino’s brief market alert for additional details: