#368 Michael Pento: The i-Shaped Economy Destroying the Middle Class, $2 Trillion Private Credit Bubble, and Why Credit Markets Will Fracture First

About this episode

Michael Pento discusses the growing asset bubbles and the potential risks in credit markets.

Michael Pento, president and founder of Pento Portfolio Strategies (PPS), returns to The Julia La Roche for episode 368 to warn that the three asset bubbles in stocks, credit, and real estate continue growing to unprecedented levels, with total market cap now at 230% of GDP versus a 90% average. He reveals that Powell has quietly printed $170 billion since December in an undeclared QE program, calls Powell's tenure "horrific," and celebrates his departure. Pento explains he's "nervously long" the market using his five-sector inflation-deflation model, currently positioned for stagflation with commodities, precious metals, and energy. He warns that credit markets will fracture first, with private credit now at $2 trillion (bigger than the $1.3 trillion subprime market in 2008), and predicts June redemptions could trigger a death spiral. Pento believes we need a 50% market correction to return to normalcy, warns we could see 15% interest rates like the 1980s but with a far worse debt backdrop, and argues the bottom 80% of Americans are already living in depression-like conditions while crony capitalism enriches the top 20%. He sees two paths forward: voluntary…

People in this episode

Host: Julia La Roche

Guest: Michael Pento

Topics covered

• i-Shaped Economy
• Middle Class
• Private Credit Bubble
• Credit Markets
• Asset Bubbles
• Stagflation
• Market Correction

Keywords

• i-Shaped Economy
• Middle Class
• Private Credit
• Market Correction
• Stagflation
• Interest Rates
• Asset Bubbles

Mentioned in this episode

Organizations: Pento Portfolio Strategies

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