Michael Kao: Engineering A Soft Landing, Avoiding A Credit Crisis

Jun 28, 2022

Ask episode

Chapters

Transcript

Episode notes

On today's edition of "Boiler Room," Alfonso Peccatiello is joined by Michael Kao, retired hedge fund manager and private investor, for a discussion on the many obstacles facing the Fed.

Kao says "the genie is out the bottle" for inflation. As the Fed attempts to engineer a soft landing, will it be able to do so without causing a credit crisis? Historically, the Fed's track record of engineering a soft landing has been "pretty bad,” according to Kao. How will this cocktail of high inflation, recessionary pressures, elevated commodity prices, a strong dollar and increasing credit risk manifest itself? To find out, you'll have to tune in.

Follow Michael: https://twitter.com/UrbanKaoboy

Follow Alfonso: https://twitter.com/MacroAlf

Follow Blockworks: https://twitter.com/Blockworks_

Subscribe To The Macro Compass: https://themacrocompass.substack.com/

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter: https://blockworks.co/newsletter/

Referenced In The Show:

Fed Chair Powell Opening Statement to Banking Committee: https://www.c-span.org/video/?c5020856/fed-chair-powell-opening-statement-banking-committee

Powell says the Fed is 'not trying to provoke' a recession, but it is 'certainly a possibility.': https://www.nytimes.com/2022/06/22/business/powell-fed-inflation-recession.html

Inflation-"Ride of the Volkyries" Thoughts: https://twitter.com/UrbanKaoboy/status/1528416947007680512

Sohn 2022 | John Collison in conversation with Stanley Druckenmiller: https://www.youtube.com/watch?v=-7sWLIybWnQ&t=2852s

Inflation Is Popping The Biggest Asset Bubble Of All TIme | Michael Kao: https://open.spotify.com/episode/4a1Bqm4X5MeqXNAiLiirWn?si=27104db4abad40f3

Commodity price inflation butterfly: https://twitter.com/UrbanKaoboy/status/1368978017033195528

Timestamps:

(00:00) Introduction

(00:49) "The Genie Is Out The Bottle" For The Fed

(05:51) Whats Going On In The Bond Market?

(15:44) Turmoil In The Housing Market

(28:10) Final Thoughts

Disclaimer: Nothing discussed on Boiler Room should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.