Juggling Dynamite

Humans seem to be endlessly vulnerable to the lure of easy money. Harder to accept, however, are those educated and trained to be professional money managers who still throw cash at charlatans and ideas with non-sensical valuations. When elders fail to lead, chaos grows. The segment below highlights the blatantly obvious mania that has piled trillions into vapid concepts in recent years.

Whoops. The magical box was actually a pyramid this whole time. Sam Bankman-Fried recently went on a podcast and tried to explain “yield-farming” to Matt Levine and the OddLots podcast and ended up describing a ponzi scheme. Chaos ensues. Listen to the full podcast (starts around 24:00) https://play.acast.com/s/oddlots/92e2…

Media magnifies the danger as it’s mostly paid advertising to celebrate the appearance of money whether leaders and companies are legitimate or not.

In this segment, Danielle DiMartino Booth offers a worthwhile update on where we are in this financial cycle. Here is a direct video link.

Danielle was a guest with Jim Goddard on Talk Digital Network, talking about recent developments in the world economy and markets. You can listen to an audio clip here.

Canadian household interest expense as a percentage of disposable income is shown below since 2000 (courtesy of Steve Saretsky and Variant Perception).

Also, see Mortgage fund in Canada halts payouts amid liquidity crunch, and China property crisis imperils $1.6 trillion of local state debt.