Analyst: ‘We’re On the Verge of a Great, Great Depression’

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Let’s hope that market strategist Peter Yastrow is wrong about the direction our economy is headed. (Not that there’s any reason to believe he’s wrong.) He told CNBC we’re on the verge of a great depression.

“We need to find real yield and real returns on these assets. You see bad data, you see Treasurys rally, you see all bonds and all fixed-income rally and then the people who are betting against the U.S. economy start getting bearish on stocks. That’s a huge mistake.”

Stocks extended losses after the manufacturing fell below expectationsin May and the private sector added only 38,000 jobs during the month.

“Interest rates are amazingly low and that, thanks to Ben Bernanke, is driving everything,” Yastrow said. “We’re on the verge of a great, great depression. The [Federal Reserve] knows it. …

That’s not all he said. He said people should hold onto stocks, but I’m not sure if that statement came before or after the Dow plunged 280 points. Not that I blame him, what else are people supposed to invest in? Sitting on cash? With the way the government keeps spending our dollars going to be worth a lot less, especially if the Federal Reserve does round 3 of quantitative easing.

Hey, remember when Nancy Pelosi told us that food stamps and unemployment would stimulate the economy? How’s that working out for us?