Forward Guidance Money Supply Is Falling By Most Since Great Depression | Danielle DiMartino Booth
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Apr 18, 2023 
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Auto Loan Demand Drops Sharply
- Auto loan demand is shrinking significantly, with a 23% drop in car loan applications year over year in April.
- High interest rates are deterring households from buying cars, signaling distress in the auto loan market.
Private Debt Market Risks Grow
- Private debt has grown massively, now as large as the junk bond market, filling funding gaps for small and mid-sized companies.
- This market is riskier than media implies and public pensions own a major share, adding vulnerability.
Fed QE Fueled VC Boom and Bust
- Massive Fed quantitative easing in 2020-21 fueled a boom in venture capital and unicorn valuations.
- The subsequent rate hikes and bank failures reversed investor sentiment, causing a sharp decline in new deals and valuations.