Policy Mistake
The US Federal Reserve is slamming the brakes on the economy to tame inflation, even if it comes at the cost of a recession
Whether you’re excited or nervous when your favorite asset falls in price marks whether you’re investing or merely speculating.
Naval Ravikant
The US Federal Reserve is determined to fight inflation, its chairman reiterated the message this week. The problem is that the Fed only has one tool at its disposal to fight inflation: Interest rates. The Fed cannot print oil, natural gas, or food. All the items that have risen sharply over the past year. Since it cannot do that, the Fed has to destroy demand to lower prices, which will come at the price of economic hardship.
You know things are really bad when Elizabeth Warren is schooling the chairman of the US Federal Reserve on common sense economics. See below in the interview of Mohamed El-Erian.
The pain experienced in financial markets is unlike anything seen over the past 40 years in terms of wealth destroyed.
Meanwhile, the Bank of Japan continues to print yens like there is no tomorrow when the rest of the world’s central banks are rising interest rates and reducing the size of their balance sheets.
Podcast Episodes of the Week
All-In with Chamath, Jason, Sacks & Friedberg | E84: Markets update, crypto collapse, Russia/Ukraine endgame, state of the podcast
After a one-month hiatus, the popular All-In podcast is back. This is a great episode in which the four hosts cover a wide range of topics: state of the world economy, financial markets, how the sanctions against Russia have backfired and made Russia economically stronger while pushing Europe to an economic crisis, and American politics.
Darius Dale: A Recession Is the Bull Case
42 Macro founder Darius Dale discusses his views of the economy. He thinks a U.S. recession is the “bull case”, and that the worst is yet to come for markets. The discussion also covers what’s ahead for inflation, commodities, stocks, and much more.
On The Brink with Castle Island | Weekly Roundup
This week’s episode covers the collapse of crypto hedge fund Three Arrows Capital (3AC). Until it became insolvent and defaulted on margin calls last week, 3AC and its founders were very respected in the crypto community, so what happened?
On the Margin | Crypto Is Facing Bank Runs | Weekly Roundup with Mark Yusko
The weekly episode released every Saturday is always on my list of episodes to listen. Fund manager Mark Yusko discusses financial markets and crypto. A good addition to your weekly podcasts!