I need an ELI5 on this, please.
Discussion
I’m so glad someone else asked 😅
I made it down the rabbit hole without ever looking at charts and don’t know if it’s even important that I understand them at this point or not.
I don't think a deep understanding is important, but a broad understanding of what the causes and effects are that are breaking the current monetary system seems doable. For example, I read The Bitcoin Standard and learned more in that book about money and global finances than I ever did back in high school or college.
Same - bitcoin books have taught me so much more than I learned in econ in college. I understand the broad concepts and what is happening, but charts just kind of look like lines on paper to me… some of them look pretty, but other than that 🤷🏼♀️ . It seems obvious we are heading toward a recession or worse without looking at a chart, but I guess charts help traditional financiers see and chart their predictions of what is coming?
Interest rates are the price of money.
Inverted yield spread => Fear about the near term, faith in the long term prospects of economy
When you get a really large inversion like that, it’s the bond market screaming to the world that major recession is brewing. Short term borrowing rates are significantly higher than long term 30 year rates…A very difficult thing for businesses that aren’t profitable to navigate because if they try to roll their debt with less or equal interest expense, they can’t do it by taking out a shorter duration instrument.
Thank you, Preston 🤙
Feels like they can keep this charade going for much longer than we expected. How much longer until this entire house of cards goes FUBAR?
Wen no bid?
I run a own a small business in 🦘so I’m always wanting to learn more about the
financial markets to be prepared with info as best I can. Thanks Preston for your educational podcasts! I listen to both of traditional and the bitcoin both I find extremely helpful. 🤙
Thanks for listening and for the very kind message, Ben!
Why are bond normies so dumb? I’ll explain on the next episode of Allegories of the Plebs!