Milk Road Macro Credit, Housing, and Stocks: How The Fed Has Created The Biggest Bubble of All Time w/ Michael Pento
Nov 6, 2025
In this discussion, macro economist Michael Pento, founder of Pento Portfolio Strategies, warns about the looming financial crises fueled by concurrent housing, credit, and stock market bubbles. He critiques the Fed’s policy mistakes, highlighting how rate cuts may harm the middle class and fail to prevent a potential bond market revolt. Pento details his investment strategies and warns of the consequences of quantitative tightening, emphasizing the urgency for reforms in financial policies.
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Three Concurrent Bubbles
- The US now has three concurrent bubbles: housing, credit, and stocks, a historically unique triad.
- Michael Pento warns this concurrency amplifies systemic risk and sets up a larger reconciliation event.
2005 Housing Bubble Call
- Michael recounts appearing on CNBC in 2005 as an early housing-bubble caller and facing pushback.
- That call proved accurate when the 2007 housing crash nearly collapsed the financial system.
Reserves And Rate-Of-Change Risk
- Bank reserves exploded post-2008 and remain historically high, enabling enormous lending capacity.
- Pento focuses on the rate of change in reserves: declines can quickly stress credit markets and trigger crises.
