Larry McDonald Warns The Paper Wealth Era Is Over And The Great Rotation Has Begun

Video Description

In this Outlook 2026 special, Jeremy Szafron sits down with Larry McDonald, founder of The Bear Traps Report, to break down the "Regime Change" hitting markets. Larry warns that a credit accident has already started, citing the collapse of the First Brands DIP loan (trading in the 30s) and the CoreWeave bonds (yielding 12%) as proof that underwriting standards have failed. They discuss the "New Axis" of power in Washington, why the "Quarterly Liquidity" promise in private credit is the next Lehman-style risk, and why capital is about to rotate from the $32 Trillion Nasdaq 100 into the "bombed-out villages" of Hard Assets (Energy, Copper, Coal). Plus, actionable deep-value trades on Diageo, Schlumberger, and Brazil. Recorded on December 15 2025 This Outlook 2026 segment is brought to you by Discovery Silver. Combining high-quality gold production with one of the world's largest undeveloped silver deposits. Learn more at (https://discoverysilver.com) Follow Jeremy Szafron on X: @JeremySzafron (https://twitter.com/JeremySzafron) Follow Kitco News on X: @KitcoNewsNOW (https://twitter.com/kitconewsnow) Follow Larry McDonald on Twitter: @Convertbond (https://twitter.com/Convertbond) 00:00 – The Credit Accident & The Fed’s $200B "Bazooka" 02:15 – "Pure Madness": Restarting QE at Full Employment 05:30 – The "Shadow Fed": Fannie & Freddie Liquidity Up 25% 08:20 – The Private Credit Crisis: First Brands DIP & CoreWeave 13:30 – The "Quarterly Liquidity" Trap: The Next Lehman Moment? 16:20 – The Great Rotation: $32T Nasdaq vs. Commodities 18:30 – AI Valuation Absurdity: 34 Rio Tintos in 1 NVIDIA 22:00 – Deep Value: Why GM & Diageo Are "Tax Loss" Buys 24:30 – The $42 Billion Robotaxi Alcohol Thesis 27:00 – Natural Gas: The FCG ETF & Free Cash Flow Yields 33:00 – Bitcoin vs. Gold: When to Rotate? 36:00 – Oil Services: Schlumberger & The "Gulf of America" 37:45 – The Brazil Opportunity: 15% Real Rates #KitcoNews #LarryMcDonald #Recession #Fed #Gold #Bitcoin #StockMarket #Outlook2026 #CreditCrisis #PrivateCredit __________________________________________________________________ Like, share, and subscribe to Kitco News—and turn on alerts to stay current with expert interviews, market insights, and breaking news coverage. FOLLOW US: X: https://x.com/kitconewsnow Instagram: https://www.instagram.com/kitconews Facebook: https://www.facebook.com/KitcoNews LinkedIn: https://www.linkedin.com/company/kitconews Listen to the PODCAST on 🎧 Spotify: https://open.spotify.com/show/1My4WgtF0ZhUnxkxDLoJof 🎧 Apple Podcasts: https://podcasts.apple.com/us/podcast/kitco-news/id1842889233 🎧 All podcast episodes available here → https://kitconews.buzzsprout.com Visit: https://Kitco.com/ for live gold, silver, and crypto prices, the latest mining news, and macroeconomic insights. Live gold price and chart: https://www.kitco.com/charts/gold Live silver price and chart: https://www.kitco.com/charts/silver Live crypto market data: https://www.kitco.com/price/crypto Learn more about Kitco News: https://www.kitco.com/news/about/ For more information on advertising, sponsorship and marketing promotions – please visit our online media kit at: https://www.kitco.com/advertising Disclaimer: The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.