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Kiss That V-Shaped Recovery Good-Bye: The US “Worse Than Greece”

Kiss That V-Shaped Recovery Good-Bye: The US “Worse Than Greece,” – Micheal Pento Posted Feb 15, 2010 08:30am EST by Peter Gorenstein There’s been many letters and symbols used over the last year to describe the shape of the US economic recovery. There’s the strong V-shaped recovery; the square root shaped recovery to connote a strong recovery followed by a period of flat to no growth; and the W-shaped recovery favored by those believing in a double dip recession. Tech Ticker guest Michael Pento has a new twist on the discussion. Pento, senior market strategist with Delta Global Advisors believes this is a tee-pee shaped recovery with the top of that tee-pee having already formed in the fourth quarter. Pento is negative on America’s near term economic prospects for three main reasons: too little bank lending, too few jobs and too much public and private debt. “I’ve never seen a v-shaped recovery occur when commercial bank lending was down 7% year over year. So, small business are not getting loans to create capital goods and to expand and hire individuals,” he observes. Exacerbating the problems at home, is what he describes, as a weak economy abroad. With China looking to clamp down on growth, the EuroZone struggling with its own debt problems, Pento asks, “Where is the growth going to come from in demand from overseas? When he says “demand” he’s referring not only to products and services but also to our growing debt burden. As the price of servicing our deficit grows

25 Responses to “Kiss That V-Shaped Recovery Good-Bye: The US “Worse Than Greece””

  1. wow..love the video..Thanks a lot!

  2. lol who will buy US bonds/treasuries/securities if china sells all theirs?

    oh the fed….

    my bad…. >=

  3. pento is spot on, the man speaks truth

  4. It’s sad that people just don’t understand that went bailouts occur, the Fed prints more money and that money gets pumped literally into the market and raises the dow. The dow doesn’t track equity, it tracks MOVEMENT. We haven’t fixed any problem from 2008, a double dip recession is coming and will implode the US before may 2011. At this point the dow jones will equal 1/2 oz of gold (gold-dow parity will occur).

  5. you are right. The public have been intoxicated by greed it wont be easy for them to give up the drug of money for nothing economics.

  6. Lol!

  7. just buy bank of america shares, theyre too big to fail !

  8. Yep, the teachers, police, Jails, and all other horrendous expense that must be cut back are just unpopular in America, who is going to pay for all this when ALL the jobs have been shipped to india and china?

  9. You are smart guy. The greenback is in trouble.

  10. @ISeeThemNow

    lol
    If that were true, then what is a “V-shaped recovery”? If you don’t count the initial drop (which defines it as a recession in the first place) then it wouldn’t be called V-shaped, it would be called “line shaped” or “/ shaped”.

    Nice try though :p

  11. Actually these interviews all talk about shapes of Recovery, not recession. So teepee is valid.

  12. Caret? Delta? I agree tho…

  13. the saddest part is i don’t think we as a nation have learned anything from all this,and were likely to make things alot worse before we hit rock bottom.

  14. this is the best comment i have seen on you tube 🙂

  15. The real damage has been done and there is no recovery,When there are no jobs there cannot be a recovery,

  16. DontTread0nMe1776 Reply March 7, 2013 at 5:52 am

    This will be a TP recovery in that the “Federal” Reserve Notes will be used for Toilet Paper soon.

  17. AP, Feb 16, 2010:

    The government said Tuesday that foreign demand for U.S. Treasury securities fell by the largest amount on record in December with China reducing its holdings by $34.2 billion.

    The reductions in holdings, if they continue, could force the government to make higher interest payments at a time that it is running record federal deficits.

    (Looks like you can’t spend your way out of debt after all – who knew?)

  18. @motoicon… The world is evolving, just as it always has. The only difference is that this time, for the first time, it is on a global scale. All great things must first wear terrifying and monstrous masks in order to inscribe themselves on the hearts of humanity”. I think this quote from Nietzsche sums things up well… Oh and your Island sounds great, I’m envious haha… Wish you well mate ;-)…

  19. low interest drive away investment, money is going for high returns. will you buy T bill for 0.01%? will you put money in Chase bank for 0.0001%?

  20. nice interview

  21. Yeah, Im on that track now and its awesome I can get people like you to confirm my train of thought. I do live on an Island though which can be probematic but at least there is one bridge to a peninsula and a major ferry to a large city if I need to get there. Its really insane to see all this unfold and I have to admit I have trouble believing our empire is collapsing…Thanks a lot I appreciate your advice.

  22. What is a bubble? A bubble is when everyone is in on a trade/trend…. Dot com bubble housing bubble.ect. ask everyone u know if they own physical gold and silver . most people are sellin gold and silver and look at where the gold prices are. wait until just 10% of our country starts buying gold and silver . when 80% of the poupulation is invested then there could be a bubble forming.

  23. y shape recovery coming..

  24. therealcaptobvious Reply March 7, 2013 at 9:31 am

    China bought US dollars to keep the Yuan valued low. The M2 blockage is the only reason why we haven’t seen inflation yet. If the Fed discount window loans at 0%, why are the banks lending to businesses at 7% ?

    increasing oil prices increased the trade deficit, which only gets worse with inflation.

    Is there a gold bubble? you decide. Why isn’t Bernanke raising rates? Or are you just selling metals?

  25. therealcaptobvious Reply March 7, 2013 at 9:38 am

    NEWSFLASH!!! THERE IS NO BUBBLE IN CHINA! I repeat THERE IS NO BUBBLE IN CHINA WHEN THEY HAVE A 30% SAVINGS RATE!

    TELL EVERYBODY.

    Carry trade investors like George Soros is a currency investor, doing carry trades. He borrows from the US at 0 % then invests in China at 5.31%. He’s calling China a bubble because he wants them to increase the interest rate.

    How is there a bubble if China’s saving’s rate is so high? And why is ours so low? 0% interest rates didn’t help Japan’s economy.

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