Thoughtful Money with Adam Taggart 30% Market Correction + Recession 'Baked In The Cake' | Steve Hanke
25 snips
Mar 30, 2025 
In this engaging conversation, Steve Hanke, a renowned economist from Johns Hopkins University, and Mike Preston, a skilled financial advisor, dive into the looming recession and the Federal Reserve's role in income inequality. Hanke predicts a potential 30% market correction and discusses the implications of a shrinking money supply. They tackle challenges posed by economic stagnation in Europe and China's struggles. Additionally, they share insights on gold as a safe haven investment, emphasizing proactive strategies for uncertain markets.
AI Snips
Chapters
Books
Transcript
Episode notes
Money Supply and Recessions
- Money supply changes drive economic activity and inflation.
- A contraction like the current one has only happened four times since 1913, always followed by recessions.
Regime Uncertainty vs. Uncertainty
- Regime uncertainty, like during the New Deal, disrupts the economy more than spot uncertainty.
- This uncertainty makes investors hesitant, as seen with the abrogation of the Gold Clause during the Great Depression.
Global Economic Assessment
- Tariffs are ineffective and disastrous for the economy.
- Europe's economy has flatlined since 2008, and China's deleveraging and slow money supply growth pose challenges.
