As the US Congress is nearing a deal on a $900 billion stimulus bill, the S&P and the Nasdaq are heading to record highs despite growing claims of joblessness. RT’s Boom Bust explores if the deal could be done in time.
“Yes, of course a deal will get done. Is there anybody in DC that really cares about debt any longer?” says Michael Pento, CEO of Pento Portfolio Strategies.
About the stock market’s current valuation, he says: “This is the most overvalued market we have ever had in the history of our stock market… We are headed to more debt and more debt monetization, unfortunately.”
Pento adds: “When you think about all the debt that we have, you know, 128 percent of GDP, of course it has to be monetized. Otherwise, reality will reveal that this market is completely untenable at these prices and the debt is untenable at these levels. That’s the truth.”
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