The Prof G Pod with Scott Galloway Prof G Markets: Liquidity and Portfolio Management in an Inflationary Decade — With Lyn Alden
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Apr 10, 2023 
This week, Lyn Alden, an independent analyst and seasoned investor, shares her insights on navigating today's complex financial landscape. She discusses the challenges of modern banking regulations and the implications of inflation on portfolio management. Lyn also highlights the potential of Bitcoin as a financial alternative and explores mispriced assets. The conversation touches on the unraveling commercial real estate sector and the transformative impact of AI, urging listeners to approach investment opportunities with cautious optimism.
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Banking Regulations
- Bank regulators want banks to be reasonably safe but not too safe, effectively making them leveraged bond funds.
- They prioritize liquidity regulations less than credit regulations, especially concerning demand deposits.
Modern Bank Runs
- The speed of financial transactions has increased while settlement speeds lag, creating vulnerabilities for banks.
- Online banking and social media accelerate bank runs, necessitating higher liquidity ratios.
Fed's Financial Loss
- The Federal Reserve operates at a financial loss due to higher interest payouts on liabilities than earnings on assets.
- This loss, while not immediately critical, impacts Treasury revenue and Fed independence.