Rebel Capitalist News Is STAGFLATION Back? Used Car Prices Set To Soar, Feds New Hedge Fund Bail Out
10 snips
Apr 1, 2025 Stagflation looms as used car prices surge, highlighting the uneven impact of tariffs on foreign vehicles. The Federal Reserve's bailouts are criticized for encouraging risky behavior and exacerbating wealth inequality. Traditional economic models are challenged, advocating for a more nuanced understanding of complex market dynamics. There's a call for market corrections to prevent social unrest. Finally, the discussion teases an upcoming networking event focused on insights from prominent figures in finance and investment.
AI Snips
Chapters
Transcript
Episode notes
Stagflation Concerns
- Stagflation is widely discussed, concerning a potential return to 1970s economics.
- George Gammon analyzes this by examining used car prices, the Fed's bailout facility, and M2 money supply.
M2 and Inflation
- M2 money supply, a proxy for currency units chasing goods and services, is currently lower than in March 2022.
- This makes a rapid acceleration of consumer prices unlikely, despite some price increases.
Recession and Disinflation
- Recessions historically have a disinflationary effect, contrasting with common stagflation narratives.
- Entering a recession with a CPI of 2.8% could lead to even lower inflation, not an acceleration.