financialization

If you think interest rates seem high right now, you might be operating with too short of a perspective. For a longer-term perspective, you'd want to talk to someone like Jim Grant. On this episode of the Odd Lots podcast, the founder and editor of Grant's Interest Rate Observer and a long-time financial commentator talks to us about why we're at the beginning of a longer-term trend of higher rates that could last decades. He argues that investors will struggle to shake off years of "buy the dip" behavior, a ZIRP mentality, and a misplaced faith in the Federal Reserve. We also discuss what it means for market behavior today.

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This talk was recorded LIVE at the All-In Summit in Miami and included slides. To watch on YouTube, check out our All-In Summit playlist: https://bit.ly/aisytplaylist

0:00 Joe Lonsdale speaks about the problem with higher education and the importance of debate/truth-seeking

10:13 Bestie Q&A with Joe: Why Americans feel victimized, what happened in 1971, getting off the gold standard, school choice, starting UATX

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For years, people have talked about China's ongoing process of opening up, or liberalizing its economy. And yet lately it's taken strong moves that seem to indicate a change in direction. It's cracked down on some of its largest tech companies while also allowing its real estate sector to cool off considerably, as we've seen with the stress on Evergrande. On this Odd Lots, we speak with UMass Amherst professor Isabella Weber, the author of the new book How China Escaped Shock Therapy: The Market Reform Debate. She explores China's big vision for making markets work in the pursuit of its ideas on socialism, and how the recent moves fit into a much broader, ongoing strategy.

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In the wake of the Great Financial Crisis, you heard a lot of talk about the US becoming like Greece unless the budget deficit were brought under control. However, these warnings proved to be unfounded. That being said, there are risks of a different variety. On the latest Odd Lots, we speak with the economist Michael Hudson on the risk of too much private sector debt, which could lead to permanently degraded consumption and investment.

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In a carry trade, an investor borrows money cheaply to buy an asset that yields more. As long as nothing changes overall, the investors get to pocket the spread. In our latest episode, our guests argue that more and more aspects of the economy resemble this trade, and that the culprit is the policymaker suppression of volatility. We speak with Tim Lee, Jamie Lee, and Kevin Coldiron, the authors of the new book “The Rise Of Carry: The Dangerous Consequences of Volatility Suppression and the New Financial Order of Decaying Growth and Recurring Crisis”.

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The U.S. spends 8 percent of its GDP on finance -- twice the amount it did 40 years ago, according to economist Brad DeLong. That figure set off a wave of soul-searching recently as commentators asked how ``the financialization of the world'' came to be and others attempting to answer that very question. This week, we speak with Satyajit Das about how finance took over the economy, markets and monetary policy. A former banker, trader and corporate treasurer, Das is well-placed to walk us through the development of global financialization and its pitfalls. Along the way we talk bonuses, negative interest rates, home safes and (of course!) alien invasions.

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