Tuesday, September 7, 2010


Ok, I was holding on to this post till later in the week, but when I watched it today on CNBC I just couldn't believe my eyes.  If the guest goes off the reservation on CNBC he will be admonished!  This is really funny and really sad at the same time.

Great interview with Michael Pento of Euro Pacific Capital on CNBC.  You know that we are getting close to the next collapse (within a year or so) when people that suggest that "bubbles" are going to end are called rude and treated gruffly.  I love the pairing here of Michael Pento and Joe Balistrino of Federated. 

While the banter between Erin Burnett and Michael Pento is entertaining and Michael simply explains that the FED has corrupted the market and therefore has distorted pricing, our friend Joe Balistrino has the money quote of the day.

At 4:24 in the video, our man Joseph explains that the question we want to know is that are treasuries in a bubble?  "Nothing is in a bubble when people want to buy it."

And doesn't that just sum it all up for you.  We don't care about a bond bubble, housing bubble, stock market bubble, or oil bubble when it is going on because it feels so darn good.  Unfortunately the mature adults in the room (Michael) are not looking at today, they are looking forward and seeing a train wreck in the making for our debt and debt funding.  Perhaps Michael should be commended rather than told he is is rude!  Meanwhile, Joseph is happy to invest his client's money in full denial that "people may just stop buying".  I guess when the the price shock manifests itself in the bond market, Joe will declare that we were in a bond bubble!

A close second in the quote of the day category is Michael's retort at 2:29 in the video - "And house prices will go up until they don't.", obviously referring to the clowns that never saw the housing bubble coming and those that continued to plow money in hopes of getting off the train before everything else fell apart.



No comments:

Post a Comment

Thanks for commenting.... if you are leaving spam or any link that is not related to the post, your comment will not be approved.