Thoughtful Money with Adam Taggart Michael Pento: A Coming Credit Crisis Is The Most Likely Trigger For A Market Plunge
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Oct 23, 2025 Michael Pento, an independent money manager and macro commentator, returns to explore the looming credit crisis and its potential to trigger a market crash. He discusses the expanding trio of asset bubbles in credit, real estate, and stocks, emphasizing the catastrophic implications of simultaneous inflation and insolvency. Pento outlines his portfolio strategy favoring precious metals over cryptocurrencies. With rising debts and systemic fragility, he advises preparing for a credit plunge followed by government stimulus, urging a focus on tactical management amidst these economic uncertainties.
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Credit Crisis Likely Trigger
- Michael Pento sees a credit crisis as the most likely trigger for a fast market plunge.
- He expects a short sharp collapse followed by massive Fed/Treasury reflation that leads to stagflation.
Record Bank Reserves Fuel Bubbles
- Bank reserves and the Fed's balance sheet expanded to unprecedented levels after 2008 and COVID.
- Pento argues that this extreme debt monetization underpins today's asset bubbles and systemic fragility.
Debt Is Far Larger Than Prior Bubbles
- Total U.S. non-financial debt is at an all-time high and far above prior bubbles.
- This unprecedented leverage makes the system highly vulnerable to mean-reversion in asset prices.