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Leveraging Debt and Financial Engineering
This chapter explores the concept of leveraging debt and using financial engineering to take advantage of opportunities in an indebted world. It discusses the historical trend of rewarding moderate debt, examples of leveraging by companies and individuals, and global opportunities for leveraging. The chapter also highlights the ironies of finance and shares interesting stories about debt and currencies in Egypt and Turkey.
In this episode, Stig Brodersen talks with investment expert Lyn Alden about currencies, debt, inflation, and how to invest in an uncertain world.
IN THIS EPISODE YOU’LL LEARN:
00:00 - Intro
06:00 - Why the bull theses are always more thoughtful and plentiful, and how to account for that.
18:47 - The relationships between debt, inflation, and wars.
26:53 - How to best take advantage of debt in your portfolio.
33:53 - How capital controls work.
46:54 - How a debt restructuring works in practice.
49:02 - Can technology be so deflationary that the FED can print us to inflation?
1:00:08 - The future role of the Euro on the global scene.
1:09:24 - Whether China is in a balance sheet recession.
1:11:46 - The pros and cons of Argentina dollarizing its economy.
Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.
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