Good Reads: Sensible Investing
Controlling inflation will 'include some pain'. Interview with Fed Chair Powell here.
Will the fed funds raise go up .75%?
Powell: I said we weren’t actively considering that. But I said what we were actively considering, and this is just a factual recitation of what happened at the meeting, was a 50-basis point increase, that’s a half a percentage point increase, the first one in more than 20 years. And that we thought that if the economy performs about as expected, that it would be appropriate for there to be additional 50-basis point increases at the next two meetings, so. But I would just say, we have a series of expectations about the economy. If things come in better than we expect, then we’re prepared to do less. If they come in worse than when we expect, then we’re prepared to do more.
Ryssdal: Let me be clear, 75-basis points is “prepared to do more?”
Powell: What you’ve seen is, you’ve seen this committee adapt to the incoming data and the evolving outlook. And that’s what we’ll continue to do.
Crypto's largest stablecoin experiment just evaporated $40 billion. Here. I did preview this for us in Jan 15th edition here.
My view is the advertised 20% APY was always too good to be true and there was enough risk in the design of the supposed-stable coin that the risk to lose the principal was significant enough.
It's been a crazy frenzy though with Mike Novogratz, hedge fund manager of Galaxy Digital, going big on the hype.
Tiger Global, hit by $17B in hedge fund losses, has nearly depleted its latest VC fund. Here in Techcrunch. Eric Newcomer has gotten a hold of Tiger Global's fundraising deck and has been tweeting select pages such as their fee structure (2% on net asset value)
Similar vibes from SoftBank: "SoftBank today reported a $27.4B loss from its Vision Fund unit, for the fiscal year ending March 31, 2022." Here.
California Sees Record $97.5 Billion Surplus, Driven by the Rich. Here in Bloomberg.
"This lopsided tax structure, in which the top 1% of earners pay nearly half of personal income-tax collections, also means revenue could plummet severely in an economic downturn. Indeed, capital gains as a share of the personal income collections are at levels last seen shortly before the dot-com bust."
If I were California, I'd try to learn from Joseph and Egypt's seven years of plenty followed by seven years of famine and aim to save a bit of that surplus for the future.
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