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:
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