Animal Spirits Podcast

Is the Stock Market Invincible? (EP. 447)

91 snips
Jan 14, 2026
Explore the implications of Jerome Powell's political risks on the market and debate the practicality of capping credit card rates. Discover the truths behind institutional home ownership and discuss inventive policies to support housing. Delve into the impact of AI on productivity and labor, and analyze the resurgence of both sports gambling and crypto investments. Consider the surprising reasons behind declining TV prices and the varied regional housing price dispersions. Finally, ponder the resilience of the stock market and what it means for the future.
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INSIGHT

Why Hard Caps Would Backfire

  • Capping credit card rates at 10% would dry up credit and crash the economy quickly. Ben Carlson and Michael Batnick argue that hard caps make lending math impossible and push borrowers to worse lenders.
INSIGHT

Politicizing The Fed Raises Risk

  • Attacking the Fed chair undermines long-term confidence in U.S. institutions and could raise risk premia. Ben Carlson warns that politicizing the Fed may eventually require a premium on government bonds.
INSIGHT

Private Buyers Matter Locally, Not Nationwide

  • Institutional homebuying is sizable locally but remains small nationally (≈1% of purchases). Michael Batnick notes private equity buying mattered post-GFC but is not the sole driver of today's housing issues.
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