Nucleus Of The Next Economic Crisis Is The Threat Of Junk Bonds

Aug. 04, 2019 5:31 PM ET
Gregor Gregersen profile picture
Gregor Gregersen


  • The major parts of the yield curve remains inverted and the countdown to recession has begun.
  • Federal Reserve is cutting interest rates to support the stock market and asset prices.
  • Leverage loans, junk bonds and BBB debt are about $5.4 trillion today, mortgage debt that crashed the financial by comparison was only $1.5 trillion.

Returning SBTV guest, Michael Pento of Pento Portfolio Strategies, believes the nucleus of the next economic crash is the threat of junk bonds. Michael's confidence of a 100% chance of a 25 basis point cut by the Federal Reserve on 31 July has turned out to be true.

Discussed in this interview:

  • 01:33 Update on the yield curve inversion
  • 03:46 Fed will inject monetary stimulus
  • 07:00 100% chance for Fed rate cut
  • 10:34 What would prick the Everything Bubble?
  • 12:13 Nucleus of the next crisis is the threat from junk bonds
  • 15:29 Why are recessions outlawed by central banks?
  • 18:26 Judy Shelton supporting the Gold Standard
  • 21:20 Buy gold because the money printing game is over

This article was written by

Gregor Gregersen profile picture
Gregor Gregersen is the founder and CEO of Silver Bullion Pte Ltd and its subsidiary, the Safe House SG Pte Ltd. Originally from Germany and having lived all over Europe and US, Gregor understood how dependent the Western world has become on money printing to fund otherwise unsustainable debts. It led him to seek permanent refuge in Singapore and found Silver Bullion. As CEO of Silver Bullion, Gregor leads the team to ensure that all legal, jurisdictional, counterparty, insurance, authentication and physical security issues are addressed so as to provide bullion owners the worldwide safest place to store silver and gold. In 2018, Silver Bullion clients are also able to buy and store cobalt and nickel with the company in Singapore.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

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