Michael Pento: A 'Hard Landing' Recession Is Coming & It Won't Take Long To Arrive

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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.
TIMESTAMPS
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.
At Wealthion, we show you how to protect and build your wealth by learning from the world’s top experts on finance and money. Each week we add new videos that provide you with access to the foremost specialists in investing, economics, the stock market, real estate and personal finance.
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There’s no doubt that it's a very challenging time right now for the average investor. Above and beyond the recent economic impacts of COVID, the new era of record low interest rates, runaway US debt and US deficits, and trillions of dollars in monetary and fiscal stimulus stimulus has changed the rules of investing by dangerously distorting the Dow index, the S&P 500, and nearly all other asset prices. Can prices keep rising, or is there a painful reckoning ahead?
Let us help you prepare your portfolio just in case the future brings one or more of the following: inflation, deflation, a bull market, a bear market, a market correction, a stock market crash, a real estate bubble, a real estate crash, an economic boom, a recession, a depression, or another global financial crisis.
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#recession2024 #marketcrash #inflationdeflation
____________________________________
IMPORTANT NOTE: The information, opinions, and insights expressed by our guests do not necessarily reflect the views of Wealthion. They are intended to provide a diverse perspective on the economy, investing, and other relevant topics to enrich your understanding of these complex fields.
While we value and appreciate the insights shared by our esteemed guests, they are to be viewed as personal opinions and not as official investment advice or recommendations from Wealthion. These opinions should not replace your own due diligence or the advice of a professional financial advisor.
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The world of finance and investment is intricate and diverse. It's our mission at Wealthion to provide you with a variety of insights and perspectives to help you navigate it more effectively. We thank you for your understanding and your trust.

[@KISSfansince76]

Michael Pento IS definitely one of the best guests anyone can get! He has a skill for explaining everything in layman's terms. Appreciate the shared wisdom!!!

[@valenj.9307]

And he's dead wrong! 🤪

[@michaeldonnellan8630]

Michael Pento is correct. Thanks for having him on again:

[@tess7798]

Michael Pento is so intelligent and articulate. My favorite guest!

[@marcgerges1380]

Michael is a brilliant man who imparts knowledge in an easy to understand style. Thanks Adam.

[@stevestelk7627]

Absolutely love listening to Micheal. Thanks to both of you for sharing the knowledge.

[@garybacher236]

You are correct in the 80s the interest rates were much higher I bought in eighties and my interest rate was 9 and a quarter but the house I bought was 42000 today it's over 250,000

[@gregorylyon1004]

The government has been fighting off a depression for years with near zero percent interest rates. And now people actually expect that. Lol

[@karstedt9987]

Excellent conversation about institutional ownership of single family homes in the US. This is not covered enough and I agree, it is extremely detrimental to society at large. It's even worse when some of the institutions buying up the single family homes aren't even in the US... WTF? Earned a new sub today.

[@you0rsp1]

This is the first person I have heard mention that student loans don't go into collections for a year. The idea that student loans payments are this massive catalyst is premature. 12-18 months from now maybe, but not now.

[@gregorysagegreene]

Assuming *everyone* holds off. I know I am. Why give Shylock that pound, going into a Depression. Paying, and hoping, didn't work for me in 2008.

[@Jake-pf4kv]

its a drop in the bucket

[@5ayes12]

Michael is so much fun --the way he expresses his ideas has the perfect blend of gravitas and amused incredulity.Thanks Adam for your excellent questions and guests.America has alot of smart courageous minds so much more so than any other nation God bless america. greetings from Vancouver

[@winstonsmith6204]

When that government does insider trading and looks the other way. Yeah, it's a clown show.

[@tonynewman3631]

An hour of Michael Pento beats anything on Netflix 😉😉

[@icecoldporksoda3461]

Yes he is definitely grade-A rolling on the floor laughing entertainment

[@jeanmetcalf1263]

Yeah, doom and gloom porn.

[@mackakiwinz4353]

Mike is epic! Straight shooters who know what is going on are invaluable. Debt is the scapegoat that will turn into many individuals and cooperation’s worst nightmare. All part of the plan to buy the assets back at cents on the dollar.

[@Nativo2202]

If it's not a primary home residence, it should be taxed proportional to how many you own. That would deter investors from buying up all the inventory

[@IT_Farhan]

Secondary property is already disqualified from homestead tax exemptions

[@gregorysagegreene]

Torches & stakes are a deterrent. 🔥💥💨

[@Snappypantsdance]

@@IT_Farhanyes, but it sounds like he’s talking about going a step beyond that.

[@gregorylyon1004]

A lot of pension funds were buying up most of the houses in the past couple of years. They actually believe that investing in the housing market will save them from collapse. It won't

[@kissmy_butt1302]

I know people that are carrying balances on their credit cards that are either paying the minimum every month or a fair amount. The credit card companies stopped letting them charge. I have seen houses in the affluent town next door that go between $1 million and $3 million sit for 3 to 6 months right now. I have a few real estate agents watch quite a few deals get nixed in financing. I honestly believe this thing is going to crash like The Great Depression. The country is so divided I see historical turmoil in this nation. We have never had a major economic and civil crisis at the same time.

[@BOBPortlandOr]

"crash like The Great Depression" or we end up in a completely new economic system.This time I don't think the 9 month pregnant women is going to go back to 4 or1 month pregnant, I figuring shes having an abortion.

[@curtgomes]

@@BOBPortlandOr Don't worry! The FED is working on a CBDC that will replace the dollar and, once you have your digital ID, you can get free computer money.... if you behave. Americans will line up by the 100s of millions for their free money. Kinda like the Covid vaccines many fools bought into....and still do!

[@ardentenquirer8573]

You need to explain the rule of 72 to the masses so they can see what the FED and the government are doing@@@ We are using the Keynes economic model here is what Keynes said about inflation: “Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become "profiteers," who are the object of the hatred of the bourgeoisie, whom the inflationism has impoverished, not less than of the proletariat. As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery. Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose.” ― John Maynard Keynes, The Economic Consequences of the Peace

[@Snappypantsdance]

Agreed! So very many things going belly up at the same time…

[@ashsobhani2379]

Excellent content. Everyone in America should know this info. Unfortunately too many *****

[@electronpictures]

pento is the most entertaining, recurring guest on this program. awesome

[@Ramzi_9]

Pento is charismatic, but he was with the crowds calling crash from 3500 levels! Only one called it right David Hunter!

[@jerrysteffy7900]

Such an outstanding and insightful dialogue on so many levels. Pento is wonderful to listen to. The latter part of the discussion regarding ‘ banana republics’ is quite concerning and worrying and we can clearly see our country heading in this direction. America has always had poor, angry and disenfranchised portions of the population. But what happens when the economic gravity that restricts advancement, opportunity, and hope creates , let’s say, 2/3 of the population in the downtrodden category?? It means very big trouble. As we look at our decaying cities and impoverished rural communities, we begin to see such an outcome in our future. But this will mean America becomes a country solely the domain of the very affluent, leaving the vast majority far behind.

[@maureenmergen1634]

Well said.

[@BB-xx3dv]

From affluent to effluent

[@tsiwt]

Correction- defaulting on a student loans is a negative mark on your credit

[@gregorysagegreene]

Oops, another dunning letter to tear up.

[@DanKohan]

This video has some really important info! They talk about how companies owe a lot of money that's due soon, and that could be a big problem. It's a reminder that our economy is all connected, and these issues might affect us. Learning about this stuff is helpful. Thanks for sharing this useful video!

[@tomdonovan4842]

As always well done great honest guest ‘’good job’’

[@thompsongl]

Pento knows what he's talking about !

[@boopfer387]

awesome Michael so wonderful to hear you talk!!!

[@robertpollard1895]

Soooo keen Love Michael Pento

[@omnimoeish]

We need more bears on the channel. Each time we get a bear the Nasdaq jumps 3%. Same with housing bears pushing up housing prices.

[@douglash.8862]

LOL, LOL,. but,.. SO,. TRUE !!!

[@jorge1170xyz]

Stocks yes, housing no way. Housing has been sliding downward for weeks and is way off the 2022 peak...at least in the West.

[@Huan-Zhang]

When I don't know what's going on with the world, I listen to Pento. Thank you for helping me navigate the chaotic time.

[@user-lp8zm9cj5t]

Thanks for fulfilling my request for Michael he is way to understand. He lays out the reasons why.

[@bla505]

Love listening to Michael, one of the best for sure. Thanks :)

[@iktr109]

Great interview yet again!

[@carrieschumacher4]

Great interview!!!

[@andrewvare3173]

We are in a classic crowding out situation now. Short time ago it was a liquidity trap. How things have changed. Thanks Professor Grainger for explaining that one.

[@maureenparran8918]

Thank you so very much for this interview.

[@randyjarvis9802]

Truth is just truth. This is truth.

[@gregorysagegreene]

True Dat.

[@littlebitmckee8234]

Great guest. Thank you!

[@heidihelo5773]

I just saw a depression coming. Oh my goodness 😳 11 million people employed in zombie companies. 🧟‍♂️

[@gregorysagegreene]

Searsicized!

[@Xaforn]

Don’t forget the restaurant industry, they’re already struggling.

[@kodygautier]

Great show!!! Would love to hear a show with Jason Hartman on housing if you can get him on!

[@europa3962]

Michael is the man. Thanks Adam

[@jaandoggwiler4495]

Love Michael Pento.

[@massonh7476]

PENTO + ADAM = 👌

[@user-tm9gc3zb5h]

We agree with Michael.

[@vonte1991]

this was an awesome listen!

[@robertmiller5835]

Great interview Adam

[@donmarek7001]

Exactly right on the debt and such. Neither party has any interests in limiting spending in any way which would do much to benefit the average person.

[@caroledoerr6872]

Michael, you speak in valid economic principles.

[@fubarbrandon1345]

Great information and guest...Thanks Adam.

[@Eleuthero5]

So nice to see Adam interview this guy because Mr. Pento doesn't lay a bunch of abstruse economic theory on us. That would only inform 2% of the listeners. Especially impressive is how Pento shows how the various pieces of the US Economy fit together i.e., banks, consumers, retailers, etc. etc.). I hope he has him on Wealthion again soon.

[@italiang8470]

His timing is off lately, but he's good on trends

[@chrisbussler5352]

Great interview

[@mattanderson6672]

You're right! Mike is one of the best guests you have on, I love him! Thank you for having him back!!

[@nohopeequalsnofear3242]

You have the best guests on your show

[@tonya1604]

Probably the best guest you have who does not hold punches when he speaks.

[@RezFaraji]

When do people say enough is enough and hold the government accountable?

[@Tyuwhebsg]

Good job guys! Thank you.

[@Ted0302]

Excellent. Great job.

[@Papolucho702]

This interview was spectacular and raised the bar for future ones. Not only that, I am more convicted to stay the course on spending less, paying any debt I can and save what I can.

[@MrGiggity890]

You should be investing

[@mikeinportland30]

Another great video Adam. Pento is always a great guest even if I don't share his politics. I am loving your focus on the issues of the Everyman and his/her issues within this economy. Thank you! Along those lines, you might glean some great insights from a book by Brian Alexander called Glass House. It's part economics, part politics, part social history.... but a compelling read and I think sadly overlooked as good guide to much of what has gotten our electorate to where they are today - willing to just destroy it all because the social contract was long ago broken for them.

[@kameskettles7233]

Yea baby! Michael Pento is the best!

[@RWROW]

I'd like to hear Michael Pento's opinion on Central Bank Digital Currency and how that could accelerate the demise of the middle class.

[@robertratz5305]

Thanks!

[@Wealthion]

Thank you very much!!

[@rafaellopez211]

Excelent interview, he's my favourite Wealthion guest

[@martinan22]

Thank you for a great interview! Very good!

[@Offon_A_Boondoggle]

Awesome as usual Adam…

[@calz7744]

Finally someone asking what happens after one year of BTFP if the value is still under par! It’s still going to be worthless!

[@taratong9074]

We need to have the real inflation rate ! Not the government inflation rate!

[@charleskilpatrick9704]

Great interview. I still have small oil exposure as the supply situation is very precarious and demand is relatively inelastic.

[@Alex-de8kd]

So we got subprime jobs this time instead of subprime mortgages. Oh, wait, one is tied to another one 🤦‍♂️

[@gregorysagegreene]

And Superprime dumbos.

[@rcdyer]

Dave Ramsey just told some guy to buy a house now because prices will be up about 7% a year from now! Jesus..

[@theonlyconstantischange123]

Interesting

[@rcdyer]

@@theonlyconstantischange123 it's ridiculous. There is no indicator that prices will be anything but down a year from now. I guess he just looked at Zillow and went with their BS..

[@gh-dw3tg]

The FED is the problem. Inflation is higher than we think and still rising yet they keep printing more money. Doesn't make sense!!!! "We have learned to do exactly this wrong stupid thing but in EXPONENTIAL terms"-- Pento 30:18. Great video...fantastic guest....keep rockin!

[@detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank

[@danielgamboa6130]

Anyone have the source of the percent and emgloyee numbers from 11:39 ?

[@LionMentality1982]

I work with a Partner in NY that helps my small business members with Access to Finance. Requirements from banks have increased and from the Banks perspective we are in a Recession. Only Industry that has "easier" requirements is Healthcare.

[@gregorysagegreene]

The Rich knew. It's up to us not to be fooled.

[@14Unow]

Tax receipts will reduce drastically once unemployment bites in 2024/25. The biggest Gov debtors, USA and EU will be unable to pay their dues. Then CBDC's will arrive, be classified as a new currency. Then USA will then ignore old gov debt/Gilts and be debt free.

[@henrykborecki3600]

Both of you are my nominees for the questioners in the upcoming primary & presidential debates.

[@averageeuenjoyer9817]

Michael Pento ! Thank you !!

[@ricklange7465]

Great interview!

[@niciassmith1204]

Low unemployment is really the only pillar left in my opinion holding up the economy. If unemployment goes from official 3% to 10% like the GFC it will be so much worse because in the GFC you had low inflation, low oil and low prices. Now everything is a record credit bubble (student loans, auto, mortgage) along with 45 year high inflation and a wide open border. It's a total disaster You could see the middle class rioting at 10% and if that happens then we are in uncharted waters

[@ottosvardstrom1602]

I love wealthion.

[@Steve-Chicago]

Very good interview, thank you

[@jamessingleton6581]

What's better than a no landing, keeping on flying 😊

[@gregorysagegreene]

Powered by the Sun, Brandon.

[@josephscott1952]

Michael Pento has a graphical and analytical prrspectus which is astoundingly accurate. Definitely like hearing his interviews

[@mishdevlin1590]

Fantastic guest

[@karlbork6039]

People always forget that the value in TLT is call writing. It's a money printer.

[@spacewalktraveller1]

Michael Pento thesis has been, a recession is coming for the last 15 years. His track record has been so dismal, one day he'll get it right.

[@blobmonster9494]

People on the streets, living in cars, $15 an hour jobs with $800 plus rent; but we aren't in a recession.

[@melbernstein6686]

I appreciate the perspective presented here. Also that you provided with Amy Nixon, Lacy Hunt etc. I have a few paid off rental properties that I’ve owned for many years. It’s making me wonder if I shouldn’t take at least some of my money off the table. But where to go from there? What if the banks don’t get bailed out next time?

[@barbaraatkinson2204]

So nice to hear the truth munch thanks❤

[@MichaelHarrington17]

The question always is: What will they (Fed) do next to confound fundamental reality?

[@gregorysagegreene]

Anything's possible, since we're already on Seefra.

[@tomdonovan4842]

Add to the real estate discussion that mortgagors have adjustable rate mortgages coming due and and Heloc’s as well as second mortgages/ also.

[@Shane-yx2hi]

Great video

[@YS-ys1us]

He predicted SPY 3400 by summer of 2023 in December 2022. 😂. He was So confident at that time, 😂.

[@theonlyconstantischange123]

I remember in mid 22 ppl were saying spx to 2000 lol

[@peterbedford2610]

Yup

[@carlosalfonso8060]

Awesome show, thanks

[@ReconPro]

He looks similar to Colin Farrell's Penguin. Great interview 👍

[@jethrojr5592]

yes, thanks ✌

[@jubyerhashin8214]

Pento looks like he could be mayor of Gotham

[@cattheman6491]

If I was an American citizen, and had 100 000 dollars, I'd invest with Michael Pento.

[@issenvan1050]

What is the reserve requirement?

[@adamarakelian5666]

pento makes clear sense. as have many of your guests

[@issenvan1050]

Zillow thing is 1% downpayment, not mortgage rate.

[@gettinafterit2158]

I have been buying as much popcorn as I can, this is going to be one heck of a show 🎉😮

[@europeantechie]

i clicked the bell so hard the episode for tomorrow got released

[@user-rr3vn8lx3y]

I have a lot of respect for Michael Pento. He is extremely knowledgeable and is honest in his view points. All of his points are spot on, etc, but combine a ridiculous amount of FED created M1 with what seems to be a turn in the velo of money will keep the debt implosion away. Velo of money went down from 1997-2020. That seems to have changed and nobody talks about it. J Powell, Janet Yellen, and Ben Bernanke should be worried about becoming Rudolf Havenstein.