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How to Lose 94% of Your Wealth in one Day, CPI and Twitter
Episode 8915th November 2022 • The Higher Standard • Chris Naghibi & Saied Omar
00:00:00 01:13:11

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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.


Enjoy!



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.
  • And so much more...


Resources:

"Here’s the inflation breakdown for October 2022 — in one chart" (article from CNBC)

"Wells Fargo mortgage staff brace for layoffs as U.S. loan volumes collapse" (article from CNBC)

"Opendoor slashes 18% of staff" (The Real Deal via Instagram)

"Opendoor posts near $1 billion loss" (The Real Deal via Instagram)

"Nouriel Roubini says it’s ‘mission impossible’ to avoid a hard landing, and we’ll get the worst of the 1970s and 2000s combined" (article from Fortune)

"Sam Bankman-Fried’s $16 Billion Fortune Is Eviscerated in Days" (article from Fortune)

Jeremy Siegel says the housing crash will force Fed chief Powell to 'flip sometime' on inflation and pivot" (article from Markets Insider)

"The Fed may need to hike interest rates above 6% to crush stubborn inflation, ex-Treasury chief Larry Summers says" (article from Markets Insider)

"‘Only time will tell if September was the nadir’: Zillow reports sharp home-value declines in these cities, amid grim outlook for U.S. housing market" (article from Market Watch)

"The U.S. housing market to see second biggest correction of the post-WWII era—when to expect the home price bottom" (article from Fortune)

"Meta will slash 11,000 jobs in first major round of cuts" (Bloomberg Business via Instagram)

"'They will come to a bad ending': A year since its $69K peak, Bitcoin has plummeted more than 70% — here's why Warren Buffett has hated cryptocurrency all along" (article from Yahoo! Finance)

"When Small Businesses Can't Pay Their Rent, Can A Recession Be Far Behind?" (article from Yahoo!)