Bloomberg reporter Zeke Faux joins the hosts to discuss his book on crypto frauds. They explore shady characters in crypto, the mystery of Tether, and Mark Cuban's loss with MetaMask. They also discuss the unusual economic cycle, earnings season reactions, and the holdings of Hollywood agencies. Additionally, they play a guessing game about an under pressure company and discuss the potential of 2023.
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Quick takeaways
Despite expectations, the US has not entered a recession, with the unemployment rate remaining low.
Tether, a stablecoin, is widely used in the crypto community despite concerns about its backing.
The impact of blockchain technology on the financial industry is uncertain, with its potential limited to behind-the-scenes operations.
Record levels of debt accumulated during the pandemic have delayed a recession and acted as a buffer against economic downturns.
Deep dives
The Historic Non-Recession
Despite an unprecedented interest rate hiking cycle, the US has not entered a recession. Nearly all leading indicators suggested a recession should have already occurred. However, the unemployment rate remains at 3.5%, indicating a robust economy.
The Resilience of Tether
Tether, a stablecoin, has survived multiple market cycles and financial scrutiny. Despite concerns about its backing and potential fraud, Tether continues to be widely used in the crypto community.
The Future of Crypto in Traditional Finance
While there are predictions of traditional finance adopting blockchain technology and digital tokens, the actual impact remains to be seen. It is unclear if blockchain technology will revolutionize the financial industry or if its implementation will be limited to behind-the-scenes operations.
The Role of Debt in Preventing a Recession
During the pandemic, corporations and consumers took advantage of low interest rates and accumulated record levels of debt. This debt has served as a buffer against economic downturns and has contributed to the delay of a recession.
TKO, the Merger of WWE and UFC
TKO, the newly merged entity of WWE and UFC, is poised to become a major player in the global sports industry. With over 350 events per year and a global audience, TKO aims to capitalize on the growing popularity of wrestling and fighting. The merger between WWE and UFC under the umbrella of TKO is expected to bring about cost synergies and drive profitability. The company is well-positioned to thrive and expand its reach in the sports entertainment market.
Endeavor (EDR) and the UFC and WWE Merger
Endeavor, the holding company that owns a significant stake in TKO, is anticipated to benefit from the merger between UFC and WWE. As the majority shareholder of TKO, Endeavor stands to gain from the success and growth of the combined sports entertainment entity. Additionally, Endeavor also owns other businesses, such as talent agencies and sports marketing, which further contribute to the company's potential for profitability and expansion.
Delta (DAL) Faces Pressure due to Rising Oil Prices
Delta, one of the major airlines, is currently facing challenges due to the impact of rising oil prices on their business. As an input cost, higher oil prices put pressure on the company's profitability. Additionally, expectations for achieving unrealistic performance targets in the future may pose difficulties for Delta in the coming years. However, Delta continues to offer a competitive service and remains committed to navigating these challenges in the airline industry.
On this TCAF Tuesday, Zeke Faux joins Downtown Josh Brown to discuss his new book Number Go Up: Inside Crypto's Wild Rise and Staggering Fall. Then, join Josh and Michael for an all-new episode of What Are Your Thoughts and see what they have to say about the biggest topics in investing and finance! On this episode they discuss: when the recession will arrive, earnings season takeaways, oil prices, the Schwab/TD transition, the ARM IPO, and much more!
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