The Fed’s inflation-fighting credibility is shot and everyone in Washington and on Wall Street is in the bag for nominal growth, ie Number Go Up on EVERYTHING, through the November election.
After that … well, as Louis XV so aptly put it: après moi, le déluge.
Wheeee!
The Boomers have all the money. The American Dream of upward mobility is dead for you. That is Financial Nihilism.
So if you’re on the wrong end of this, what do you do about it?
You gamble. You f**king gamble.
Recent major media stories that feel to us like they’re part of a larger narrative campaign.
I got some more color from Rusty on the shift in our Narrative Monitors this month from hawkish to dovish central bank narratives, and I thought it was well worth forwarding to everyone.
Recording of last Friday’s private credit working group call, along with a transcript for those who prefer reading over video.
The main takeaway is that we are increasingly thinking that the expansion in private credit is less of a ‘bubble’ than it is a structural transformation within capital markets.
Recent major media stories that feel to us like they’re part of a larger narrative campaign.
I think the reason real assets like commodities are typically so disappointing in their inflation-hedging reality relative to their inflation-hedging theory is that they have no inherent pricing power. They only have a market story – and a mechanistic one at that – that they are an inflation hedge. It works for a while because enough people tell the story and believe in the story, until it gets trounced by another story, like growth/recession or supply-and-demand.
Is private credit any different?
Between the idea
And the reality
Between the motion
And the act
Falls the Shadow
We all know that technology can be bad for children. But a new paper from 13D Research, which was republished on Epsilon Theory, really drove home the point of just how bad it can be be and the impact it has on the wirings of children’s minds. In this episode, we discuss this research and what we can do as parents to help mitigate the damage technology is doing to our children. We also cover the election and the impact of Trump’s legal problems, Elon’s Musk’s pay package Joe Biden’s scripted press conferences and the importance of embracing difficulty.
We are saying everything, but also we are saying nothing, just sort of talking at each other about things like “rizz” and “Price-to-Earnings Ratio”.
How do we fix that?