Who dares to mention the word recession anymore? Now, we have another robust jobs report just when the economy seemed to be cooling. Fortunately, there is a consistent explanation. The velocity of money. The velocity of money fell to almost 1.0 during the pandemic, the absolute floor. Velocity was never going to stay at one in a fractional banking system. This paper shows the strong relationship between velocity and real interest rates and the loan-to-deposit ratio.
I put this analysis together to help me understand the COVID-19 situation while I am confined to shelter in place in California. I am sharing it with other managers to help decision-makers understand this fluid, ever-changing situation. Let's all stay strong. #beatcovid19 #beatthecoronavirus #covid19 #staystrong
Libra: Facebook being hoisted with their own petard. Facebook has credibility issues with Congress starting with a 2011 settlement with the Federal Trade Commission for deceiving consumers and this year it has set aside $3 billion for violating the consent decree. Now, it wants Congress to believe that it will not share information from Calibra wallets with Facebook clients!
I have great respect for Warren Buffet and Charlie Munger, but I thought that both were unnecessarily extreme and emotional when they issued those statements about the crypto world. Now, after reading the Securities and Exchange Commission’s (SEC) complaint against Blockvest and Reginald Buddy Ringgold III, I have come to side with Buffet and Munger. The untold story of how a 30 something year old questionable, uneducated religious fanatic, who was once connected with a dubious credit company and sued the Oakland police department, established himself as a fintech guru and became the darling of the crypto world.
