Fed Chairman Jerome Powell still says it's possible to cool the economy and keep employment stable – without a severe recession, in what would be a 'soft landing.' However, according to Nouriel Rubini, professor emeritus at New York University’s Stern School of Business and CEO of Rubini Macro Associates, better known as 'Dr. Doom', a recession and an economic 'hard landing' are all but guaranteed.
In today's episode Chris and Saied discuss Dr. Doom's prognosis and why historical evidence would seem to prove him right: No one is getting a soft landing.
They discuss the recent news that a federal judge in Texas has ruled that President Joe Biden's plan to cancel hundreds of billions of dollars in student loan debt was unlawful and must be vacated, delivering a victory to conservative opponents of the program.
Chris and Saied look at Sam Bankman-Fried, the cryptocurrency entrepreneur, founder and CEO of FTX and (former) billionaire, whose cryptocurrency empire went from $16 billion at the start of the week, to nearly non existent by the end.
They also discuss comments by former Treasury Chief Larry Summers, who said that stubborn inflation could force the Federal Reserve to hike interest rates above 6%, the highest level in more than two decades.
Join Chris and Saied for this fascinating conversation.
What You’ll Learn in this Show:
Why the idea that the economy will somehow avoid a recession and achieve a kind of 'soft landing' is a fallacy.
What happens now that President Biden's Student Loan Forgiveness program has been (temporarily at least) struck down.
How one of the darlings of the cryptocurrency industry lost 94% of his wealth in less than a week.
Why Larry Summers thinks that the economy might be more resilient to rate increases than expected, which could put pressure on the Fed to hike rates even further.