Will U.S. Debt Soon Become Junk? -- Peter Schiff VP Michael Pento Slapped Down By Erin Burnett (VIDEO)

CNBC Video:  Erin Burnett with Michael Pento & Joseph Balestrino -- Aired Sep. 7

Burnett whines:

• "Michael, you are so rude!"

What a fool.  And I'm not talking about Burnett or Pento, rather Joseph Balestrino, who said the following:

• "Nothing is in a bubble when people want to buy it."

I called the massive Treasury rally, and I will admit it's a bubble.  Perhaps Balestrino has forgotten the internet mania and tech bubble of '98-2000.  Markets take on a life of their own, and I have no doubt that part of the meteoric rise in Treasuries is due to short-covering from big players who made the wrong bet.  And that includes Zhou Xiaochuan, the head of the Chinese Central Bank, who has reportedly lost $430 billion on China's Treasury holding this year.

It's eerily similar to the internet bubble, where short sellers who made bad bets, like Julian Robertson of the Tiger Fund, (he shorted way too early, and was squeezed out at the absolute top) kept prices elevated for more than a year with short covering.  Meanwhile the bulls languished in their profits, confident of their thesis, at least until they were thoroughly and completely annihilated just a few months later. 

The markets always get valuations correct, eventually.

Erin Burnett met Joe Kernen for the first time wearing a bikini, drinking wine in a hot tub:

• Erin Burnett Calls The Federal Reserve A Ponzi Scheme

• CNBC's Erin Burnett, Banking Apologista, Leader of Idiots

• Erin Burnett, (Former) Banking Apologista, Grows A Sack

• Erin Burnett Challenges Larry Summers On Spending Cuts

• Dr. Keynes Killed The Patient (by Michael Pento)

• Worst Trader In The HISTORY Of The World: Chinese Central Bank Chief Loses $430 Billion On U.S. Treasuries

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Screenshot

Comments

[DailyBail]

In Tiger Management's case, the Jaguar Fund had suffered sharp losses for more than a year, tumbling 7.8 percent in February and 13.8 percent year-to-date as of Feb. 29. Meanwhile, the fund's assets plunged from roughly $20 billion in 1998 to about $6.5 billion, analysts said.

http://money.cnn.com/2000/03/30/mutualfunds/q_funds_tiger/

[DailyBail]

The Soros announcement follows hard on the heels of the closure of the second largest hedge fund company, Tiger Management LLC, headed by Julian Robertson. Announcing the closure last month, Robertson said his approach to investing, which was buying value stocks and selling overvalued stocks short, could not be successful in the current market, which he described as “irrational”.

http://www.wsws.org/articles/2000/may2000/soro-m05.shtml

[DailyBail]

Bank Bailout News: CNBC's Erin Burnett, Banking Apologista, Leader of Idiots »

http://dailybail.com/home/bank-bailout-news-cnbcs-erin-burnett-banking-apologista-lead.html

One of the first stories i wrote for this site...

[DailyBail]

Erin Burnett Calls The Federal Reserve A Ponzi Scheme

http://dailybail.com/home/erin-burnett-calls-the-federal-reserve-a-ponzi-scheme.html

This one is awesome...

[DailyBail]

Erin Burnett, (Former) Banking Apologista, Grows A Sack

http://dailybail.com/home/erin-burnett-former-banking-apologista-grows-a-sack.html

In this one she goes after Goldman Sachs for the $13.2 billion stolen from taxpayers through AIG...

[mark mchugh]

So back in January, Erin thought Treasuries were a Ponzi scheme, but yesterday they were all good? Yikes.

Take away the bidders that have access to free Fed money, and every auction is a failed auction.

[DailyBail]

Take away the bidders that have access to free Fed money, and every auction is a failed auction.

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It's a great point mark...i avoided that part of the bubble completely in the story above...but there's no doubt free money from the Fed as well as their own auction bidding are keeping treasuries afloat...a year and a half ago i expected failed auctions...then after watching success after success selling their junk i knew i had to change my outlook and personal investments...i was short treasuries last year until june...i have not put on a long position since then but i'm certainly glad i closed the short...

[Matt SF]

Bubbles can stay irrational and artificially inflated a lot longer than shorts can stay solvent. Hence the huge popularity of long dated derivatives - huge upside (if bubble pops) without risking much capital.

But as someone who has watched CNBC religiously since 1998, I'm growing increasingly concerned about the amount of peyote in their KoolAid. Any guest who suggests something negative is about to occur is branded a permabear, a kook, or considered rude if they don't buy into the pro-equities, "get out there and buy stocks you idiot" agenda they're pushing. Even Schiff himself, with his killer rep over the last few years, still gets the cold shoulder.

One of the few exceptions to this trend was Kyle Bass' appearance discussing sovereign debt defaults and Keynesian endpoints. (But was still accused of being a downer.)

[DailyBail]

Hey Matt...good to hear from you...it's been a while...here is that Kyle Bass clip you mentioned...

Kyle Bass Tells David Faber: Japan Will Default, U.S. Will Be Next, You'd Be Crazy To Be Long Stocks (Must See Video)

http://dailybail.com/home/kyle-bass-tells-david-faber-japan-will-default-us-will-be-ne.html

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And here's your blog so readers can check it out...

http://steadfastfinances.com/blog/

[DailyBail]

Kyle Bass: Bring Back Glass-Steagall, Eliminate Off-Balance Sheet Assets, And Cap Leverage At 10X

http://dailybail.com/headlines/kyle-bass-bring-back-glass-steagall-eliminate-off-balance-sh.html

Another solid piece from Kyle Bass...

[mark mchugh]

DB,

I'm not sure if "bubble" is the right word for a market that is driven by what are essentially fictitious purchases. In my opinion, the treasury "auctions" are the biggest threat to America today. It's a scam that is gutting our nation and TPTB have no intention of changing it.

P.S. I got burned shorting them too (back when I thought we were a capitalist country).

[DailyBail]

Yes...starting early last year...january february of 2009, the short Treasury trade seemed like an absolute no brainer...what with trillions of new debt coming down the pike...but things kept going so well at every auction...i wasn't paying close attention and didn't anticipate the FED buying on their own as well as banks using free money from the FED to buy as well...i took a hit but am glad i accepted the loss and moved on...

[DailyBail]

Mark...also a good point on the word 'bubble'...i should have substituted 'scam' instead...

[DailyBail]

8 Ways to Impress Me

To draw the attention of CNBC anchor Erin Burnett away from the ticker, think schedule savers and travel

http://www.menshealth.com/men/best-life/career-money/schedule-saving-travel-tips/article/5d4f6063304d6110VgnVCM10000013281eac

Idiot...

[Z]

I know how Michael Pento feels. If you have a different view from “the moderator”, you are rude and your views are not just, worthy or honorable.

What’s the difference between Natalie Morales and Erin Burnett? Natalie Morales looks better in a hoola hoop.

http://www.youtube.com/watch?v=Zi4XIt_jUoQ

[Z]

Gibbs: The Poor Economy Doesn't Hurt Rich People

http://www.youtube.com/watch?v=FNujiRka9hc

Do you agree?

[Wil Martindale]

This
http://letthemfail.us/archives/5423

and this:
http://letthemfail.us/archives/5380

Pretty much sums it up for me on this topic....