Wealthion, Released on 9/14/23
For Part 2 of this interview, CLICK HERE
With interest rates higher than they’ve been in over 20 years, many analysts and economists have expected the economy – and then the markets – to buckle under the higher cost of debt. After all, we have 6x the total public debt as we did that last time interest rates were this high. But whether that will eventually prove true, the markets are priced as if it won’t. Right now, they’re priced for no recession, no adverse lag effects from the historically aggressive hiking & tightening campaign pursued over the past year and a half by the Federal Reserve and most of the other major world central banks. So when will this higher cost of debt matter? Will it matter? For answers, we turn to the highly popular and always informed money manager and macro analyst Michael Pento.
0:00 Why is the recession still coming?
5:26 The high cost of the debt.
11:39 Risk of zombie companies on this program.
18:41 What is the shadow banking system?
22:34 How high interest rates are hurting the government.
28:57 How banks are tightening lending standards.
34:53 The long end of the yield curve.
40:30 Retailers in sell mode.
45:36 Consumer pressure on the housing market.
51:15 The Fed is a confederation of banks.
57:43 The real estate market in a depression.
1:04:27 The oligarchy of the housing market.
Michael Pento is a specialist in Austrian economics and is the President of Pento Portfolio Strategies. Prior to starting Pento Portfolio Strategies he served as a senior economist and VP of the managed products division of another well known financial firm. Michael has also created ETFs and UITs that were sold throughout Wall Street. Earlier in his career, he worked on the floor of the NYSE. He is the author of The Coming Bond Market Collapse: How to Survive the Demise of the U.S. Debt Market.
Adam Taggart is the Founder of Wealthion. He is also Co-Founder and former President of Peak Prosperity. Adam is an experienced Silicon Valley internet executive and Stanford MBA. Prior to partnering with Chris Martenson (Adam was General Manager of our earlier site, ChrisMartenson.com), he was a Vice President at Yahoo!, a company he served for nine years. Before that, he did the ‘startup thing’ (mySimon.com, sold to CNET in 2001). As a fresh-faced graduate from Brown University in the early 1990s, Adam got a first-hand look at all that was broken with Wall Street as an investment banking analyst for Merrill Lynch. Most importantly, he’s a devoted husband and dad.