What Went Wrong With Warren Buffett + A Blow Up Doll Economy

Max and Stacy discuss the simple puzzle of the Chinese finger trap that children often fail to solve because they panic when they should relax. This applies to the economic system in which the Fed and, to a lesser extent, the government panic and print rather than relax and just let the business cycle play out.

In the second half, Max talks to Preston Pysh of TheInvestorsPodcast.com about what went wrong with Warren Buffett and his style of investing. They also discuss another legendary investor’s foray into bitcoin. Paul Tudor Jones has sent the bitcoin community into a tizzy as the hedge fund manager points to the central banks as the reason he wants to own ‘the fastest horse in the race’ against money printing. 

___

A Blow Up Doll Economy

Max and Stacy discuss the blow up dolls and mannequins simulating activity at social distancing restaurants but offering up a creepy post-pandemic unease about the new normal. They compare that to our blow up doll economy where money printing also creates a creepy illusion of economic activity but that the money velocity shows is all fake. In the second half, Max talks to Tyson Slocum of Public Citizen about the structural failures in the energy market which allowed for a negative price of oil and how the Saudis got played by retail ETF investors in America.