The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network BTC045: Luke Gromen on China, Evergrande, Macro, & Bitcoin
Sep 29, 2021
Luke Gromen, a financial expert and author known for his macroeconomic insights, dives deep into the current state of the global economy. He discusses whether we've run out of steam economically and unpacks the real stories behind rising inflation. Gromen shares his thoughts on China’s Evergrande crisis and its global ripple effects. He also critiques U.S. financial leadership's short-term focus and explores the evolving role of Bitcoin in today's market. Gromen's unique perspectives on debt and investment strategies offer fascinating insights for keen listeners.
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The Great Resignation
- Many people are re-evaluating their careers due to mandates and the appeal of remote work.
- This trend, dubbed "the great resignation," contributes to labor shortages and economic shifts.
Evergrande and Contagion Risks
- The Evergrande situation in China may not be a Lehman-like event for the banking sector due to China's state-controlled system.
- Contagion risks exist through potential slowdowns in construction and luxury goods markets.
Negative Real Returns on Bonds
- The current low treasury yields combined with high inflation create negative real returns for bondholders.
- Luke Gromen explains that many are regulated into buying these bonds, treating them as collateral rather than investments.