Speaker 1: We have a massive bubble inequities and it has to
be reconciled. And there's only two ways that can be reconciled.
Stocks go nowhere for about ten years and GDP and
incomes catch up, or the stock market has to crash.
It's the only two ways that is going to happen.
And I've never seen a bubble. I've never read about
a bubble. I've never witnessed a bubble. I've never experienced
the bubble or heard a rumor about a bubble that
burst innocuously. They all crash and this one is a
gigantic one.
Speaker 2: You're listening to Carrie Let'sa's Financial Survival Network where you
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Speaker 3: And welcome you are listening to and watching the Financial
Survival Network. We've got America's number one pickle ball warrior
with us today, Michael Pentopento port dot com. Michael treats
the markets like they were just another game. Of pickleball,
and usually he wins. That's why you need to listen
to him. Michael, your recent commentary describes the US economy
as approaching a historic reckoning. This was in your November
seventh piece. Could you simmer summarize please what you see
as the core reckoning and the variables involved in it.
Speaker 1: Okay, the profession I was right, I'll try to do
that for you. Well, first of all, you know, I've
been saying now for the several years, and I'm sure
I'm being derided in many different venues that we have
a triumvit of bubbles existing concurrently. So I kind of
feel like Alan Greenspan with his o rational exuberant speech
in ninety six. Well you know it took three years
or four years for that to planet pan out. So yeah,
we have the biggest the three bubbles ever in existence
in US history, and they all exist together for the
first time, so credit, real estate, and equities. And I
got to tell you what happened today, So you have
you know you guy, a guy named Jensen Wong coming
out and giving a beats the street, and the Wall
Street sends the stock up to the moon, and the
market was up almost like two percent. When I left
this morning for my pickupball imagine, and I come back
and it's down. Uh, Nvidia is down one percent as
as I'm talking, you know, before right before I got
on the on the interview with you. You know when
it's when the CEO comes out and says that orders
first chips are off the charts in a prepared statement
for his earnings release. It's just it's just like, am
I dealing What am I dealing with anymore? We're just
we live in a world of carnival barkers, and it's
a freak show out there. It's not just in corporations.
It's even in the government where we were giving dividends
to people from tariffs which are being repealed as we speak.
You know, we have tariffs on on cocoa beans and bananas,
which we don't grow in the United States. We're supposed
to have tariffs to help rebuild the American middle class
and manufacturing base, but we have tariffs on bananas. Doesn't
make any sense. So the tariffs are going on bananas,
but the tariff revenue is going to go on the
bananas too. And it's funny thing is we're talking about
sending two thousand dollars stimulus checks to people, and that's
supposed to be like a dividend payment. But we have
one point eight trillion dollar deficit.
Speaker 3: It doesn't make sense time, But it doesn't make matter.
Speaker 1: I mean, from whence and from where are you getting
your money from? If we if we have one hundred
and twenty four percent debt to GDP thirty eight trillion
dollars national debt and it's growing by two trillion dollars
per annum, and you're sending out a dividend. No, what
you're doing is sending more helicopter money out. But people
or people say what they want now, they say that,
they say that the demand is off the charts, Which
doesn't you sound like a Charlotte. He's like a Carnival
barker when you say that. And yeah, yeah, you have
a government that says that we're sending out you know,
we're giving you a refund check from the revenue from
all the revenue from tariffs, which the tariff revenue was
supposed to pay down a deficit, bring it to zero
and then hopefully start paying down the national debt. Well,
is that happen here? You get the truth here. None
of those things are even close to happening.
Speaker 4: That is exactly it.
Speaker 3: It's just like a tax rebate, but they call it
a tariff rebate. And look, we've got to I don't
remember how much international trade. We do, something like twenty
something trillion. But if you were even to say, you know,
a ten percent, we were getting a three percent tariff.
If it went up to ten we'd take in two trillion.
Which you know what happens though, is you don't really
take it in because people find substitutes and they find
workarounds right.
Speaker 1: Well, And the big work around from Liberation Day on
April second was we're gonna have massive tariffs on the
rest of the world, and we're going to rebuild the
Americans manufacturing base. And then when the market crashed like
twenty percent in a few days, we've been walking that back.
We've been doing the moonwalk on that ever since. So
the tower for revenue is gonna be very minimal, and
the debt and deficits are.
Speaker 3: Going to go higher.
Speaker 1: And hire we have a central bank too that you know,
they're trying to reach two percent inflation. By the way,
that's now stable prices. It's not you it's two, So
you can't reach two for four and a half years.
So what do you do when you can't reach two
after four and a half years. We ignore inflation, and
then that would be bad enough. They're not even ignoring
it now. They're going to go back into QI and
start low and they're lowering. They're in the process of
lowering interest rates. You know that, right, Sure, you can't
make If you can't make your two percent inflation target
and you miss it to the upside by fifty percent,
what do you do, well, you start cutting rais and
printing money.
Speaker 3: Yeah.
Speaker 1: I feel like I'm in bizarro land here. This is
just and nobody tells the truth anymore, whether whether it's
you know, orders of orders are vendor financing orders are
going through the roof off, the throw off the charts,
and we're sending out rebate checks to people because now, well,
this is the greatest country the planet has ever seen.
But in the meantime, the red ink is spewing, you know,
over the damn walls.
Speaker 4: Yeah, I want to correct myself.
Speaker 3: Our annual import tab is four point one trillion. It's
actually higher than that because that doesn't include illegal imports
and a lot of stuff that was going through the
deminimous exemption. Even if it was five trillion and you
managed to do a twenty percent tariff, that's only a trillion.
And then we still have the issue of of substitutions
and and workarounds and all of that. So there's no
way that the revenue from tariffs could have ever ever
made up for the US trade deficit.
Speaker 4: That's right.
Speaker 1: Well, tariffs have been in place now for a few
for a few months now at least, and we still
have a one point eight trillion dollar national annual deficit,
annual deficit. So you know, the revenue isn't there. And
if the revenue isn't there, and were you giving back
to people, you're you're just deficits. You're doing the same thing, Kerrie.
What caused the massive inflation that we had post COVID
was helicopter money. You went around, you bail out the
banking system. You went around the banking system and sent
checks directly to people and they went out and spent
the money. So it was it was an automatic, huge
increase in the broad based money supply. Seeing too few goods,
and we had inflation bottlenecks. You know, you remember it
was twenty percent inflation the way the way they the
way they counted was nine. It was really twenty.
Speaker 3: And the thing that bothers me about the whole thing
is that the inflation we had was equal parts Trump
and Biden. All Right, Trump was as responsible for it
as Biden, but Trump got to leave office, so Biden
got the entire responsibility for it.
Speaker 1: But the Trump at least Trump had an excuse.
Speaker 3: He had.
Speaker 1: You know, we had the COVID crisis. I mean, the
COVID was over. Why it was, But now what's the
what's the excuse now? And the greatest economy the world
has ever seen? Why are we sending rebate checks out?
I mean, I'm all for cutting taxes, it's a wonderful thing,
but you're you disrupted the whole world and the markets
with with these tariff bs, and now you're trying to
send that money back to them. It doesn't make any
sense to me. You know what you want to do,
Here's what I would do. I would cut taxes and
cut spending commensurately, so you starve and kill the cancer
known as government. Thank you, Ronald Reagan, and you empower
the people. But we're not doing that. But we're not
doing that.
Speaker 3: And that was why initially DOGE seemed really hopeful. And
I think DOGE is still working behind the scenes because
they made a claim it's coming up now that they
plan to using the doge AI tool cut fifty percent
of all the government regulations, which are outmoded. A lot
of them now are illegal due to recent court case developments.
What happens if they cut half the government regulations out there, Michael.
Speaker 1: That would be wonderful. That would be a huge boon
to the private sector. Let's see if it happens.
Speaker 3: You know.
Speaker 1: In the meantime, we have let's talk about the credit
bubble that we have. I mean, let's talk about live
in the real world with AI. I mean, do just
been ran out of Dodge for the most part, remember dozs,
those of the last cover in the Then the the
courts say, well, you can't fire anybody, you know, it's
just it's just a cluster mess to clearm to clean
my language. But I mean, we have we have things
like the credit bubble. We have private equity and private credit,
things that were very small back in two thousand and seven.
They're exploding through a roof. You've got massive problems in
private credit right now. So if you're you're a business
and you can't get a loan from the bank and
you can't float dead on your own, you go and
borrow it through the shadow banking systems. It's second one
point three trillion dollars of this stuff out there. At
one point, I think it's one point five trillion dollars
that So then you have FAHA loans which have supplanted
the subprime loan loans. They're not one and a half
trillion dollars of FAHA secure loans that they were almost
non existent too. There were very very few FAHA loans
going into the credit crisis of two thousand and seven.
So instead of instead of ninja loans, we now have
fachase secure. The government took the government takes everything, The
government prints money, takes bad assets onto the balance sheet
that you know, the banks make ninja loans while we
make that illegal. And then we say, okay, fjall won't
do no money down loans. We'll do three and a
half percent down. And the these loans are the full thing.
There's there's the default rate U the initial foreclosure rate
is twenty percent higher year of the year, and foreclosures
in general are up a third almost almost a third.
Thirty thirty two percent, believe is the exact figure of
foreclosures in the greatest economy of the world has ever seen.
Speaker 3: Carrie, Yeah, it's so great.
Speaker 1: Is the video goes up six percent because the orders
are off the charts. I believe somebody wrote an article
about the accounts receivable being like a half a trillion dollar.
I mean, come on, and then this little room is
about vendor vendor financing. I mean, I'm I'm not gonna
say I'm a balance sheet expert on in video, but
I you know what. You know what bothers me viscerally
is when the CEO talks about businesses off the charts
in a prepared statement on his earnings release, I use
like I cringe. I'm cringeing, and maybe the market is saying, like,
wait a second, this is something wrong here, because in
video is up six percent in the pre market and
now it's down. Why what's going on? It's all part
and parcel of this bubble mentality where people don't tell
the truth anymore and they just lie. They just lie
to you about tax rebates and refunds, and how great
the economy is. In the meantime, the bottom four quintiles
have been suffering mightily since COVID. YEP, I keep my
hearing people, the idiots on some of these channels say, well,
you know, income, I have kept up with the rate
of inflation?
Speaker 4: Whose incomes?
Speaker 1: Kerry? First of all, thirty percent of the work the
American citizenry is not in the workforce. Okay, thirty percent.
So what what that retirees make up? Like a quarter,
like a twenty I think it's twenty or twenty five
percent of people are retired. Tell me if you're retired
and it's one fifth or one third of the of
the of the voluntari, tell me if your retirement income
has kept up with inflation? What about the underemployed and unemployed?
Has their incomes kept up with inflation? And even if
you want to lie and say that it's true if
you're employed and say and say, well, okay, well incomes
have kept up with inflation post COVID, that's only if
you lie about inflation. Yeah, obviously, I mean, I don't
know how home prices if you up twenty percent a
year of the year and your inflate official inflation CPI.
You know, the core Personal consumption Expenditure Index is up
like seven. Well, well then, and then we're going to
give you a you know, we're going to give you
a four percent raise and say you're keeping up with inflation.
It's just all bogus. And I've been I've been carry
I've been doing this for thirty five years. I have
never seen so many parts of the economy, markets in
its highlight zone.
Speaker 3: Everything is rigged. Michael, Right, Well.
Speaker 1: Yeah, I gotta tell you it looks it looks more
and more like finding the truth is is like looking
for a needle in this in the haystack.
Speaker 3: As they say, So, how do you play this here?
Speaker 4: Well, first.
Speaker 3: Do things protection and profit.
Speaker 1: So so first thing you first you have to throw out.
First thing you have to throw out is the mancher
from Wall Street that you can't time markets. No one
knows when a recession is coming. You can't predict a
credit crisis. So just buy and hold a sixty forty portfolio.
Do you remember back in twenty twenty two, Tell me
how your sixty forty portfolio did. If you don't remember,
I'll remind the audience that the S and P fell
about twenty percent in twenty two, but long duration bonds
lost over a third. It was the third of their value.
Now that's the US treasuries. I'm not talking about you know,
some exotic penny stock, you know, high high, high yield
piece of junk. I'm talking about US treasuries lost over
thirty percent of their value in twenty twenty two. And
and and the reason is both those asset classes were
in a bubble bubble. So when you're both when both
asset classes are in a bubble, and the and the
carnage is going to start from the bacle on the
bond market and the credit market starts melting down, Well,
that part of your portfolio isn't going to work. And
then when rate spike and mortgage's rate spike and corporate
borrowing cross spike and valuations crumble, both sleeves or your
portfolio are gonna are gonna go swirling down the toilet.
You're gonna get So you have to be you have
to be an active manager. And for me, i'd rather,
I'd rather than the market was up ten percent and
I was up eight percent. For example, in twenty twenty five.
I'd rather something like that was the case. And then
and then you said we underperformed the S and P
five hundred. Well, I don't have an S and P
five hundred fund only, but I participate in bull markets.
But here's what I didn't do. I didn't lose you
fifty percent when reality hit. And if you look at something,
it's just simple is look at the total market KAP
of ecuaries as a percentage of GDP, And yes, that
is still a very valid metric. I don't want to
hear about people say, well, you know, US corporations are international,
so the numerators, you know, the nominator numertor ratio is bogus. Well, no,
that's just straight played out wrong. First of all, foreign
corporations are building stuff and producing stuff in America. That's
g NP and GVP. Those denominators are very closely related.
They're actually in fact, in fact, they're almost the same.
So it is a valid metric. And when the total
market cap of equities is two and twenty percent of GDP,
you've got a real problem because the market could drop
by half and still be overvalued. And it's not just that,
it's it's the it's the earnings yield being negative, it's
priced the sales being in a record high, the trailing
twelve month pe ratio being you know, way out of whack.
So we have a massive bubble in equities and it
has to be reconciled. And there's only two ways that
can be reconciled. Stocks go nowhere for about ten years
and GDP and incomes catch up, or the stock market
has to crash. It's the only two ways it is
going to happen. And I've never seen a bubble. I've
never read about a bubble. I've never witnessed a bubble.
I've never experienced the bubble or heard a rumor about
a bubble that burst innocuously. They all crash. And this
is one who's a gigante. So you could believe me.
Speaker 4: You could.
Speaker 1: You can comment that I'm an idiot, you can say
I'm a Cassandra, you can say what do you want?
I don't care. I am an active manager participating in bubbles,
but with an eye out of with a very robust
algorithm that lets me know when I need to get
more defensive. You could do what you.
Speaker 3: Want, all right, Well, and that's interesting and at least,
there are things you can do to protect yourself.
Speaker 1: So yeah, can I tell you what they are? First
of all, First of all, you can't be in sixty
to forty portfolio. I just mentioned that, but you could
own some precious metals. By the way, in a liquidity crisis,
those will go down, so so silver, platinum, those will
go down. Gold may be less so, but it'll only
go down for a short period of time. You should
be a buyer when that happens. But you want to
protect yourself. Really, there's four things that could protect yourself.
There's cash, there's short term bonds. The US dollar will
most often work as a as a as an offset
because of will ECUITI crisis, everybody wants US dollars. That
might not work this time, but for sure you also
have to short the market. So there's only four potential
things that work, and at least three of them are
mandatory cash, short term bonds, and shorts. And if you
don't exit your if you don't exit your your shit
coin holdings, and you think that that's gonna If you
think that you're an alternative asset class is BTC and
all those other thousands of other derivatives like you know,
we got doze coin, You've got a million other things
that One of the reasons why I don't like cryptocurrencies
is because while bitcoin is limited to twenty one million units,
well there's there's just there's a gazillion other ones that
serve the same function of being decentralized and an open
ledger blah blah blah blah blah, immutable transactions. They all
perform the same function. I mean, if there was if
there was an unlimited number of elements in the Earth's
crust that were very very rare. There were differ but
they were rare, and they never and they were indestructible,
and they were discovered discovering that element every every day,
Well gold would lose some of its luster because I
have so many other choices. I have so much competition
for that which is very rare, very beautiful and destruct
and indestructible. Right, you follow that philosophy, unlimited number of
blockchains that we create can be created. And Wall Street
has bastardized the price a bitcoin by pimping it like
whors you know, everywhere you look, you know, it's crypto.
Crypto bowlers are pilling piling up on TV left and
right telling you is that, you know, taking an asset
class that probably has some function, some real utility. Maybe
if if you want to get your money out of
a country that's going and solvent, maybe it's worth a
few thousand dollars in unit. But it's not a few
thousand dollars. It's one hundred and twenty thousand dollars a unit,
which is ridiculous. It's all bigcoin is is a code.
It's it's not a lot. It's it's a bunch of
numbers in letters. It's all your own. It's electronic numbers
and letters that you could take them all, put them
in cold stores and write them on a piece of paper.
But how much do you want for that piece of
paper kerry.
Speaker 3: Whatever the market will yield. I wish I was the
one that thought of it in the first place. Yeah,
so gold and silver is really your only defense here.
What do you think of the recent movements of silver
fifty dollars and ounce. They've been fighting it like mad.
I don't want it. It's conspiracy theories. But it seems
like comex GPT cannot get used to the fact that
fifty that silver is over fifty dollars an ounce. Yeah.
Speaker 1: So so in the vanguard of protecting yourself against inflation,
I always look to gold. Silver and platinum are secondary
and tertiary roles in my view. But bear in mind
what I did say is that in a liquidity crisis,
everything gets sold. So just keep that in mind. And
that to me is, you know, if you look back
in two thousand and eight, late two thousand and you know,
the summer of two thousand and eight into the Fall
of Oe and then didn't rebound until around you know,
January February of nine. Gold is a wonderful asset and
wonderful hedge, but in a liquidity crisis, you sell everything.
That is why I didn't make my what I called
a four horsemen of the economic apocalypse. Now gold is
out performed the S and P in the last quarter century.
And I think now that we have a federal reserve
which is going back into QE, which is lowering interest rates,
you're going to get a new head of the thed
which is going to be what I call an obsecree,
a sikaphant in the nursery regime, who's going to take
interest rates. I mean, you got this guy in Iran
who wants to slash a series of fifth this is
what he said, a series of fifty bases point rate cuse,
so he wants So we're going back to you know,
we're going back towards zero interest rate policies, We're going
back into QE, and the deficit is going to go
from where it is today around two trillion dollars to
six trillion dollars in the recession. So if that's all
we're aheaded. If the liquidity crisis is genuine and it's coming,
be aware that the market is so overvalued, it's going
to be like a huge black hole sucking everything down
except for what I just mentioned, and I'll mention it again,
short term treasuries, the US dollar, and your ability is short.
The market adroitly will protect you and make you profit
from what's happening. And I would, and I would use
the liquidity crisis to stock up on gold, primarily because
you're I think you're looking at a double digit fed's
balance sheet from where it is today, double digit fed's
balance sheet for short negative real interest rates once again,
and inflation that's going to run intractable. So go get
it while it's on sale. Well forced al as a
goal of is what you should be looking to buy.
Speaker 3: Right, just like what happened in eight no nine, right,
gold and silver crashed and then uh temper of dollars
and then they took off.
Speaker 1: Temporary exactly said that's use that quick, use that as
your entry point, because that's that's gonna that's going to
bounce the hardest and fastest.
Speaker 4: All right.
Speaker 3: So when we're looking at the liquidity event, which is
inevitably going to occur, most of the collapses we've had
have always hinged on that liquidity event.
Speaker 4: How far off do you see it happening?
Speaker 1: I can't give you. I can't give you a date.
I can tell you where. I can tell you when
it's hash starting to happen. So what I've said, this
is what I'm doing. Yes me, I manage money for
a living. I'm on the record saying that it looks
and you're you're listening to somebody who said that we
were in reflation and a growth cycle all of twenty
twenty five. So this is not a perma bear speaking
here someone who says that we were happily participating in
the bullmarket lately, and I mean the last couple of weeks,
we've been becoming a little more cautious because high yield
spreads have stopped contracting, their starting to rise. Financial conditions
have stopped easing, they're starting to tighten. If you look
at other things like you know, the five year five
year forward inflation spread. If look at copper gold ratio.
I have a model. There's twenty components and aggregate in
the model. The model tells me just to get a
little more cautious. So it's not a binary event. I'll
say bullish bearish.
Speaker 3: I don't do that.
Speaker 1: I'm just saying that liquidity is tightening. I don't know.
If it's the yen carry trade that's evaporated. I don't know,
if it's the reverse repo facility it's now bankrupt and
at zero. I don't I shouldn't say bankrupt. It's back
to zero cheap, so reverse rebuff facilities. The excess reserves
from banks that were once was two and a half trillion,
now it's zero but effectively zero. So that is one
of the reasons why the Fed's panicking, because when when
you have bubbles like this, you have to keep you
have to keep inflating them otherwise they just collapse on themselves,
collapse on themselves, they implode. So I'm getting more cautious,
That's what I'm doing. So I'm selling some of my
AI related stuff and I'm but I brought some health care.
I did increase the short that I have in the market.
So I'm just I'm just not interested in going down
with the ship. And we're not going to go down
with the ship God rolling, We're not. We are going
to take the appropriate steps when the credit and the
credit is to two ways you get a credit crisis.
One is because of a deflationary recession slash depression when
there's no money around, and the other one is when
the liquidity runs out in the bond market, and that
you have a bond market crisis where it rates spike
even though this you know, the economy is not yet
falling to pieces. I'm looking out for both those occurrences
and I'm going to protect the sid That's what we do.
Speaker 3: So I have a theory that these markets actually when
these things.
Speaker 4: Happen like eight No.
Speaker 3: Nine, they actually happened long before the public is made
aware of them. So all the perhaps the insiders who
know can adjust their portfolios accordingly, it's kind of like
a black hole gobbled up that star twenty years ago.
We're looking through our telescope and that star looks like
it's still there, but in reality, it's gone. And that's
what I think has happened to the silver market and
the gold market. I think they've already imploded, but nobody
bothered to tell us.
Speaker 1: That's your theory. Yeah, that's your theory. I base my
entire model on it. And now I've been doing this
for thirty five years. I used to work on the
floor in New York sac Change. I'm not a neophight
by any mean. What you said is how I is
what I based my model on. What you're really saying
is that the stock market is based on insider information. Okay,
the people who know what's going on. I call it
the few oligarchs that that run this planet, the multi
multi billionaires that run this world. Okay, they know when
the major asked the major banks their assets are starting
to erode. They know, and they act, and that's why
you see that My model looks at the arcane parts
like CDs spreads, these arcane things that you know CNBC
would just tell you buy and hold or this market
went down today. We don't know what happened. No, it
was happening. Is is that credit The credit markets are
starting to fracture and financial conditions are starting to tighten,
and the market is going down. They say, well, it's
just a normal correction. The fifty look at the fifty
day moving errors or the two undred Dame move erers.
I remember the Golden Cross or the Desert bs. The
insiders know, they react. I'm following them. That's what the
model is based on.
Speaker 3: And I think it's already I think the silver price
fixing mechanism has already collapsed.
Speaker 4: It collapsed back.
Speaker 3: I think in May when silver crossed thirty two dollars
and the price became uncontainable. And I think we're seeing
the same thing there. The black hole already gottle the star,
but we're still seeing the light coming from the star
because we're light years behind the insiders.
Speaker 1: Yeah, well you don't have to be if you have
the if you know what, if you know the insiders
take steps to protect themselves and if you follow that
their actions, you could you could be saved like they are.
They don't come on CNBC and announce what they're doing.
Speaker 4: I can tell you that, and they don't brag about it.
They keep their mouths.
Speaker 1: Shut, keep their mouths shut. They do what they have
to do, and you need to follow them. I don't
know them. They're about friends of mine. They don't tell
me what they're doing, but I can see their footprints.
Speaker 3: That's the sign of a market pro. You can actually
see because you don't see it directly. You don't hear
them place in the orders or see them, but you
see the aftermath and you see the patterns. We're talking
pattern recognition, and that's what sets you apart from some
guy who just says buy ets.
Speaker 1: Well, first of all, or thereabouts of money managers don't
manage the money in a you know, in a long
short strategy. Their rubric is, well, I'm going to kind
of put some money here that looks like the S
and P, and I'll put some money here in the
in bonds based on your age, and I'm going to
go out to the golf course and try to raise
more money. They're salespeople. And then you have the people,
you know, the small amount of people who actually run
a long short strategy, but how many are really economists
and market strategists. How many of those people are and
how many of those people actually have an algorithm that
works that gets you out.
Speaker 4: I mean, all right, the alharithm.
Speaker 1: My monel picked up on COVID before, you know, I
didn't know if it was a I don't know if
it was the sniffles coming from China or if it
was the Bebonic plague. I didn't know. But my model said, WHOA,
something's happening here. Insiders are dumping and they're buying the
protection for their portfolio, and I'm going to do what
they do. Yeah. I'm not saying that I'm some kind
of you know, super genius or I have this kind
of knowledge that no one else knows. I just been
doing this long enough, and I'm independent and objective enough
to say, what what what do I need to look
at to let me know when there's a problem, a
real problem in the credit markets, or when a recession
is going to happen. Well, and and that's where I credit.
That's the model. That's what the model built of it.
Speaker 3: You're what we call Michael in the trade, a certified
algorithm decoder.
Speaker 1: All right, I guess I'll take it. I don't know
that I don't. I don't even know if that means,
but it sounds good. It's better than instead of being
the used carpet salesman.
Speaker 3: How's that a certified financial algorithm decoder, because that's exactly
what it is. You see the patterns, Yeah, understand the
algorithm behind it, and then you act accordingly.
Speaker 4: Hey, just tell us.
Speaker 3: Where we find you how we need to get more
info on the fund there.
Speaker 1: So, the penzo Port website is penzoport dot com. I
have a weekly podcast for fifty dollars a year. You'll
get my thoughts on the saling, economic data and a
high level view of the markets. And then if you
were a US citizen and you have one hundred thousand
and you qualify for long short strategy, you're suitable for it.
I'll manage your money directly in the inflation, deflation and
economic SOCCO model, where I have some of my money
there too. I mean, my my client's money is in it.
My you know, my money in the for the market,
you know, not my real estate holding them up. But
my money is in there too because I eat my
own cooking, and I would the only way I would
be able to invest in this market is if I
had that algorithms otherwise I wouldn't I wouldn't trust it.
I would be scared.
Speaker 4: To death.
Speaker 1: And I'm sure a lot of people are, and they
should be people who are people who are honestly objective
and they see what's going on around them with you
know them, you can't afford a home. Home prices are
unaffordable for the first time home buyer. The stock market
is way overvalued. You're looking at this gambling and this
nonsense that's going on in the credit markets, and you
see people borrowing, you know, billions of dollars for this
AI craze, which reminds me a lot of the Internet
craze in two thousand.
Speaker 3: Great exactly, dodri Holm.
Speaker 1: It's a great technology, it's productivity machine. It's going to
be wonderful. But there's over spending on it now.
Speaker 3: Over capacity like everything else that they do.
Speaker 4: And you make a great point there.
Speaker 3: Hey, stay safe on the pickle ball court, don't running
backwards whatever you do, just let the ball pass, because uh,
you know, you got a lot of a lot of
investors in your fund there who are counting on you
to stay healthy and mentally sound.
Speaker 4: Here.
Speaker 1: Wow, Okay, I will, I will, I'll wear a helmet,
my Frank.
Speaker 3: Is idea good idea. Well, it's those compound wrist fractures
that really kill you and the Achilles tendon ruptures that
pickleball is famous for it. In fact, I wrote a
book that I just dropped recently called hoa Emperor, about
a guy who goes into witness protection. He comes to
South Florida. He starts taking over h oa's, turning them around,
making them beautiful, all the while stealing them blind. And
one of his scams is pickleball, So he's got the
Great Pickleball Caper of Port Efford, Lades.
Speaker 1: All right, good to see you, Gerry.
Speaker 3: You well, take care.
Speaker 2: Thanks for listening to Carrie Letz's Financial Survival Network, your
solution to today's trying times. For the latest, go to
Financial Survivalnetwork dot com. Financial Survival Network now more than
ever