The Reddit-fueled GameStop stock saga is taking center stage in Washington. The key players are testifying in front of the US Congress on how one little stock play by independent investors almost took down Wall Street.
RT’s Boom Bust talks to CEO of Pento Portfolio Strategies Michael Pento about the hearings, and elicits his view on the entire situation.
“A couple of shares of stock, this is not endemic in Wall Street, [yet it] was in danger of bringing down the whole system, according to some CEOs of exchanges,” Pento says, adding: “We almost brought down the entire financial institution because of GameStop.”
He goes on, raising a question: “What is going to happen when the multiple trillions of dollars in junk bonds that have been pushed to the lowest yields to treasuries ever, the lowest nominal yields ever, blow up?”
According to Pento, “The entire fixed income market, which is exponentially bigger than GameStop, is about to blow due to insolvency and inflation. Watch out!”
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