The Fed Balance Sheet Is the Trigger

Michael Pento's takeaways

• Top takeaway The guest argues that a Federal Reserve balance-sheet drain is the trigger for forcing Wall Street back in line with the real economy.
• He puts total equity market cap at roughly 235% of GDP as of 2026-07-09 and says it would go down to maybe around 100% of GDP.
• On that path he expects the stock market to have to collapse by more than 50%.
• He expects the home price-to-income ratio to go back down from around 7 to where it normally sits, around 3.
• He says this means banks are going to have a lot of problems and that a depression in the US is unavoidable, in his opinion, while saying he still has some hope in Kevin Warsh.