Money Stuff: The Podcast Awkward Pauses: Tariffs, Basis, Leverage
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Apr 11, 2025 Delve into the world of tariffs and their surprising impact on stock prices. Explore basis trades and how they influence market leverage and economic contagion. Discover the role of social media in shaping perceptions of financial events. Gain insights on navigating swap spreads and the intricacies of trading leveraged ETFs. The conversation blends humor with sharp analysis, making complex financial concepts engaging and accessible.
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Market Volatility During Vacations
- Matt Levine recalls past market volatility during his vacations, including Lehman Brothers' bankruptcy in 2008.
- Two days before recording, a fake tweet about a tariff pause caused market surges, foreshadowing actual events.
Tariff Policy via Truth Social
- Trump's tariff policy is communicated through Truth Social posts, raising concerns about formal processes.
- This shift contrasts with constitutional procedures for tax policy, highlighting an unusual approach to governance.
Walter Bloomberg's Market Impact
- Walter Bloomberg, known for posting terminal headlines, gained a following over time.
- A single fake headline from this account significantly moved the market, demonstrating potential for manipulation.