✨ 12 May 2022 | Value Investing Substack NEWS
Druckenmiller Bio Part 4, Lyn Alden's May Newsletter, IronsideMacro: We've Reached Peak Inflation, 40% of Bitcoin Investors Underwater, Fundstrat's Tom: FAANG's Are Attractive, Bitcoin Going To Zero?
HIGHLIGHTS
SUBSTACKS + LONG-READS + TWITTER
Our broad measures of price stability and correlation confirmed our view that we have passed peak inflation. Before we work through the details, just a note on attribution for the inflation crisis. Failure to recognize that the pandemic was the antithesis of the financial crisis in terms of the price effect, a dynamic we identified in the early days, was the largest policy mistake since the Great Inflation. The Fed does not deserve all the blame, the American Recovery Plan - $1.9trln stimulus signed in March 2021 - made a major contribution to the inflation shock. Additionally, the Yellen Treasury’s draining of the $1.8 trillion account at the Federal Reserve (TGA) from February through August 2021 that former Treasury Secretary Mnuchin had accumulated, by reducing Treasury issuance, injected more liquidity into the banking system at a faster pace than Fed QE purchases of $1.44 trillion in 2021. Goods inflation was the first order effect of the pandemic, pandemic policy drove housing and other services inflation higher. The Fed, Treasury, Congress and Administration are all complicit in the inflation crisis. Public policymakers got pandemic economics wrong, many of us in the private sector did not. (emphasis mine)
LINKS
Stock Markets:
Asia-Pacific start-ups seize growth at home amid travel shutdowns | FT
Top Glove accelerates bond buyback, says will continue to do so at right amount, pricing (Malaysia)