Henry M. Paulson, Jr. was the 74th United States Secretary of the Treasury and the exCEO of Goldman Sachs. Lehman Brothers was the competition. Lehman Brothers was allowed to fail, but when it was Goldman Sachs turn he saw the light and was born again. There is a lot more to this story than his sugar coated answer. 🤭🤭🤭
This is pretty much the standard narrative and the typical supply side nonsense. Homelessness is one of those things that falls under you cannot fix something with the same logic that caused the problem in the first place. You need a demand side solution sufficient enough to balance out 45 years of supply side favoritism. They are never going to build their way out of this by building more high end McMansons and low end housing which are no less than rental tracks where a lot of the times the entire track is owned by the same corporation. These solutions are only an excuse for deregulation and subsidies to further pad developer profits. In twenty years we will still be dealing with the same problems. In fact, that is how we got to where we are currently at.
This was a great video! Would love to hear this question asked in a similar interview. Without a period of deflation and a recession, how can a balance be restored to wealth distribution between economic classes in this country? The Fed's policy of low interest rates and QE from 2008 onwards was a driving force of skyrocketing socioeconomic divides. The stock market and the housing market have grown at rate relative to growth in the money supply. While the net worth of asset owners in America has ballooned in the past 15 years, the majority of wage earners have only seen their quality of life remain the same or decrease. The people that primarily benefit from improving market statistics are people that already own homes and equities. Right now most young people are locked out of the American dream of owning a home unless assisted by wealthy parents. This can't just be the new normal that we learn to live with. Such an environment creates the kind of doomerism that is detrimental to society.
Completely agree. The role of the Fed has entrenched the wealth divide by expanding the balance sheet with the sole purpose of propping up the bond market (and indirectly, the stock market). Financial asset deflation is the only way to let the waste and inefficiency be washed out of the system.
I really enjoyed this conversation. I particularly liked the discussion of housing crisis, general prices, and people still feeling unhappy with the economy as a result. How do you see that playing in the realm of public perception going into 2024?
Personally I believe the reason both the housing and stock market haven't crashed is because everyone is expecting the fed to cut rates. As soon as that hope goes away I think both markets will fall heavily. However, if the fed does indeed cut rates due to recession we may rebound the other way as well. Definitely a good time to be investing in both stocks and bonds. Just don't fool yourself into thinking the only way to invest is in stocks.
maybe deflation would be bad for major corporations and provide a more practical approach to the economy of the future by allowing less competition for new small businesses, and for it to be the norm in cities where the “damage” of deflation was caused to those walmarts and dollar generals that ran small businesses out in the first place.
thanks for watching!
Henry M. Paulson, Jr. was the 74th United States Secretary of the Treasury and the exCEO of Goldman Sachs. Lehman Brothers was the competition. Lehman Brothers was allowed to fail, but when it was Goldman Sachs turn he saw the light and was born again. There is a lot more to this story than his sugar coated answer. 🤭🤭🤭
This is pretty much the standard narrative and the typical supply side nonsense. Homelessness is one of those things that falls under you cannot fix something with the same logic that caused the problem in the first place. You need a demand side solution sufficient enough to balance out 45 years of supply side favoritism. They are never going to build their way out of this by building more high end McMansons and low end housing which are no less than rental tracks where a lot of the times the entire track is owned by the same corporation. These solutions are only an excuse for deregulation and subsidies to further pad developer profits. In twenty years we will still be dealing with the same problems. In fact, that is how we got to where we are currently at.
Great interview !
This was great, thanks.
I like the new format, this is cool!
the single best collab ever, his book was phenomenal
SUCH a great episode from both of you, thank you kyla (and nick)!
“if you can swim, you can stay” he’s so real for that
Wow this episode was incredible, love that closing statement from him as we look further into the future for what markets will hold.
Nick x Kyla collab!! Love this
Wow, wonderful job on the quality! I can tell you put in a huge effort into setting up the podcast :D Congrats!
This was a great video! Would love to hear this question asked in a similar interview.
Without a period of deflation and a recession, how can a balance be restored to wealth distribution between economic classes in this country?
The Fed's policy of low interest rates and QE from 2008 onwards was a driving force of skyrocketing socioeconomic divides. The stock market and the housing market have grown at rate relative to growth in the money supply. While the net worth of asset owners in America has ballooned in the past 15 years, the majority of wage earners have only seen their quality of life remain the same or decrease. The people that primarily benefit from improving market statistics are people that already own homes and equities. Right now most young people are locked out of the American dream of owning a home unless assisted by wealthy parents.
This can't just be the new normal that we learn to live with. Such an environment creates the kind of doomerism that is detrimental to society.
Completely agree. The role of the Fed has entrenched the wealth divide by expanding the balance sheet with the sole purpose of propping up the bond market (and indirectly, the stock market). Financial asset deflation is the only way to let the waste and inefficiency be washed out of the system.
Great insight, wish the table was a little smaller so you guys could be closer together but I digress.
i know he’s a journalist and it’s his job but still he’s so eloquent
nice one
pillows kinda threw me off 😂
Hes right
I really enjoyed this conversation. I particularly liked the discussion of housing crisis, general prices, and people still feeling unhappy with the economy as a result. How do you see that playing in the realm of public perception going into 2024?
Don't cross the river......if you can't swim the tide. (With Regards to The FED)😊
The US debt isn't a problem because it can print dollars as needed, it can raise taxes to increase revenues and no country has ever died of debt
Personally I believe the reason both the housing and stock market haven't crashed is because everyone is expecting the fed to cut rates. As soon as that hope goes away I think both markets will fall heavily. However, if the fed does indeed cut rates due to recession we may rebound the other way as well. Definitely a good time to be investing in both stocks and bonds. Just don't fool yourself into thinking the only way to invest is in stocks.
this is a very long way to say I don't know, we just look at stuff and make a guess...
maybe deflation would be bad for major corporations and provide a more practical approach to the economy of the future by allowing less competition for new small businesses, and for it to be the norm in cities where the “damage” of deflation was caused to those walmarts and dollar generals that ran small businesses out in the first place.
Deflation would probably hurt less big companies with cash reserves or able to control cash flow.
PAY EVERYBODY A LIVEABLE WAGE
Throw the whole system away bro
i wonder how many interns on Wall Street have a ping for him
The excuse the deflation will constrain American consumerism is total BS. Nobody will wait a year or more to buy something at a 1-2% discount.
“We’re not in a recession” 100 million Americans struggling to afford housing and food: “u sure about that”?
the number is 14.3 million americans who are food insecure, and ive addressed what you're talking about in countless videos.
@@KylaScanlon you can’t actually believe that only the poorest 5% are struggling - can you?
The narrative that the economy is great needs an asterisk *for the top 30% of earners and asset owners*