American Consequences - October 2017

Danielle DiMartino Booth


with the fundamental structure of their higher education system, which does not attach a stigma to vocational education. So you’re able to continue climbing up the manufacturing ladder going forward, in addition to having STEM and educating engineers. We don’t need as many liberal-arts majors as we’ve got running around out there. Q: I’ve got one last serious question for you. I want to get back to the other debt bubble that I spend a lot of time on, which is the corporate debt bubble. And I’m sure you’re familiar with the name Martin Fridson, the “dean,” if you will, of high-yield debt onWall Street. DANIELLE DIMARTINO BOOTH: Oh, absolutely. Marty is a good friend. Yes. Q: And Marty is forecasting something on the order of $1.6 trillion in defaults by 2021 or 2022 or so, over the next three or four years, over the next credit-default cycle. Do you share that outlook? Do you think it’ll be that bad? DANIELLE DIMARTINO BOOTH: I do, but he comes at this from the prism of the godfather of junk. And I come at this from the prism of investors in the same way they look the other way with subprime mortgages having a AAA rating. I think investors have looked the other way with investment-grade debt. There’s too much of it out there. I think we are going to be living in a world populated with fallen angels.

A featured commentator on CNBC, Bloomberg, and Fox Business, Danielle DiMartino Booth makes bold market predictions based on meticulous research and years of experience in central banking. Her book Fed Up: An Insider’s Take on Why the Federal Reserve is Bad for America is a must-read

if you’re at all interested in changing the way the Federal Reserve is run. And she recently launched a newsletter, Money Strong , in partnership with Dennis Gartman, who we featured in our September issue of American Consequences.

For the full interview between Buck, Porter, and Danielle, click here to sign up for the Investor Hour notification list. Like American Consequences, it’s 100% free. Each week, you’ll receive new show updates, previews, and access to transcripts and show notes. Whether it’s about investing... business... politics... or a controversial social issue... you’ll get the unfiltered information from behind the scenes.

94 | October 2017

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