Interesting Frontline last night

[like2]

I found this episode of Frontline to be interesting as well as informative-


https://www.pbs.org/wgbh/frontline/documentary/age-of-easy-money/

 

[MichaelB]

Can you let us know what the episode is about?

 

[Freedom56]

Can you let us know what the episode is about?

"Age of Easy Money"

It's worth watching for a historical perspective.

 

[like2]

Basically, it goes over how the infusion of Fed money along with low interest rates kept the economy and markets moving upward after 2008 and where we may be heading as those things change- not doom and gloom, but insightful and interesting.



From the website-


Around the country and across the world, the threat of a recession is looming and economic uncertainty is rising as markets, businesses and individuals adjust to a new reality: the Federal Reserve is raising interest rates and pulling back on its epic monetary experiment that started with the Great Financial Crisis.
From the award-winning team behind The Facebook Dilemma and Amazon Empire, the two-hour documentary Age of Easy Money investigates how the Fed’s experiment has changed the American economy and what it means that the era may be over.

 

[frayne]

"Age of Easy Money"

It's worth watching for a historical perspective.

And why we are in the current position we are in.

 

[Freedom56]

And why we are in the current position we are in.

Keep in mind the architect of the easy money won a Nobel prize in economics.

 

[Rianne]

One interviewee mentioned a famous quote from Warren Buffet, something like

-You won't see the naked swimmer until the tide goes out. So many financial talking heads repeated that over and over.

I also liked the scenario...4 men sitting at a bar make $60K each and Jeff Bezos walks in. The average income of the 5 people in the bar? You can't use averages to describe the income of our country.

There were some great quotes by these financial wizards during this documentary.

Another described the market as kids in the candy store. And when you take away the candy you get temper tantrums.

Another financial guru called the last 10 years corporate socialism.

I enjoyed this documentary with serious humor all through it.

 

[Rianne]

Keep in mind the architect of the easy money won a Nobel prize in economics.

But it wasn't supposed to last 10 years. And the banks were supposed to use the money to give loans to businesses and get the economy rolling. Instead, stock buybacks. The original concept was a good one. It's the "greed is good" attitude of big banks that made this ugly.

 

[gromit]

Thanks for the heads-up. A secondary PBS channel in my area is showing it tonight.

 

[freedomatlast]

So, this time is different?

 

[SnowballCamper]

I just watched. It was almost as frustrating as listening to congress question Powell last week (or so). However, it was nice to see it end on a perfectly reasonable (IMHO) perspective, that the Fed cannot do what the political process is supposed to do.

 

[steelyman]

These sorts of Frontline episodes are interesting. Here are a few from prior years that are on my save list:

“The Power Of The Fed” (2021)

https://pbs.org/video/the-power-of-the-fed-zzeu12

“Money, Power and Wall Street” (2012 4-parter)

https://pbs.org/video/frontline-money-power-and-wall-street-part-one

“Ten Trillion and Counting” (2009)

https://pbs.org/video/frontline-ten-trillion-and-counting

 

[Graybeard]

I watched it today. Makes me want to move almost everything out of equity MFs and go into Treasuries or CDs. Scary stuff, we have idiots running our financial system.

I was a bit concerned about how honestly this is being presented. Frontline usually does a good job of reporting and I have watched many of their shows but it is on PBS and a high percentage of video was from CNN. I don't trust any of the MSM but IMO some are less toxic than others, those 2 are not on that list. I have watched CNBC mostly for 15 years and while they don't interject politics into their reporting they have some guests where it comes up but all in all I view them as fairly balanced. CNBC doesn't have a left wing agenda like Bloomberg or right wing like Fox Business. It was a good show and I intend to rewatch it.

 

[Music Lover]

I have watched CNBC mostly for 15 years and while they don't interject politics into their reporting they have some guests where it comes up but all in all I view them as fairly balanced.

You can't be serious?

 

[FREE866]

I thought it was interesting, but keep in mind economists are often wrong on predictions, as are most people.



Also, that guy Jeremy Grantham is just such a perma bear and doomsayer I just can't take anything he says seriously. He's been a gloom and doomer for literally decades. Following his advice has been financially suicidal.



Then that woman at the end saying if you need your money in the next couple of years, be "very careful"...well obviously haha...that applies to any moment in time ...........

 

[The Cosmic Avenger]

One interviewee mentioned a famous quote from Warren Buffet, something like

-You won't see the naked swimmer until the tide goes out. So many financial talking heads repeated that over and over.

I also liked the scenario...4 men sitting at a bar make $60K each and Jeff Bezos walks in. The average income of the 5 people in the bar? You can't use averages to describe the income of our country.

Those remind me of one analogy I've heard that stuck with me: imagine all the brokers and fund managers in the world start flipping coins at the same time. After an hour you'll probably have quite a few who have had huge runs of heads or tails. That doesn't mean they're lucky, or they know how to flip a coin, that's just how probability distribution works.

Of course, there is some skill to it, but it's impossible to tell whether a particular result is due to ability or chance.

 

[Jerry1]

I watched it today. Makes me want to move almost everything out of equity MFs and go into Treasuries or CDs. Scary stuff

I watched it and felt the same way. However, I don’t think there’s anyplace to hide. Maybe gold. But, buying CDs and Treasuries seems counterintuitive given that Treasuries are the vehicle the Fed is using to orchestrate this mess. As was said in the documentary, eventually the bill is going to come due. The question is whether or not there is a strategy to protect oneself from the worst of it when it does.

 

[Graybeard]

I watched it and felt the same way. However, I don’t think there’s anyplace to hide. Maybe gold. But, buying CDs and Treasuries seems counterintuitive given that Treasuries are the vehicle the Fed is using to orchestrate this mess. As was said in the documentary, eventually the bill is going to come due. The question is whether or not there is a strategy to protect oneself from the worst of it when it does.

Yeah, just what is the "safe" alternative? I have to assume that Treasuries and FDIC CDs would be the safest. I don't trust gold. Whether an ETF or physical gold I don't see it as a safe option. Gold can crash, around 2001 it was about $210! I guess have faith that the financial system doesn't turn into Weimar Germany even though it is being run by people who are incompetent or have malicious intent!

 

[Koolau]

Yeah, just what is the "safe" alternative? I have to assume that Treasuries and FDIC CDs would be the safest. I don't trust gold. Whether an ETF or physical gold I don't see it as a safe option. Gold can crash, around 2001 it was about $210! I guess have faith that the financial system doesn't turn into Weimar Germany even though it is being run by people who are incompetent or have malicious intent!

With all its faults - and there are many - gold is "real" and is accepted any place on the planet as money - and has been so since recorded history. Fiat currencies are "real" as long as people believe they are valuable. The minute they fall out of favor, they can become worthless. Name 5 fiat currencies that existed (in current form) even 100 years ago. By the way, the dollar doesn't fit that definition. I don't suggest going to gold but I look at our money as simply better than the other fiat currencies right now. Not a very good recommendation in my opinion, but I'm no expert so YMMV.

 

[FLSUnFIRE]

I don't suggest going to gold but I look at our money as simply better than the other fiat currencies right now. Not a very good recommendation in my opinion, but I'm no expert so YMMV.

As does the rest of the world. People still want the USD and still want to get here and take great personal risks to get into the country.



We (the US) have, by far, the most robust and self-sufficient economy and vast natural resources. We also have a relatively free society and a very productive workforce and a culture of innovation that is the envy of most others. We also have nukes to dissuade, and vast geographical barriers separating us from, those that seek to erode those advantages, and unfortunately/fortunately, that adds more stability. Whatever may happen at the macro level, we are likely to remain on top for the foreseeable future.


I'd call myself a skeptical optimist -I come across pessimistic sounding often because of my questioning nature but there has been doom and gloom preached since the beginning of time but the human condition globally continues to improve over time.


Now to go watch the video in the OP's post.....

 

[FLSUnFIRE]

I'm still watching the OPs video but in the realm of Econ-edutainment, I enjoy Economics Explained YouTube channel: https://www.youtube.com/channel/UCZ4AMrDcNrfy3X6nsU8-rPg (unfortunate timing on the most recent featured video). The country break downs/scoring are interesting along with various data slicing and dicing.

 

[DrRoy]

We have it on the DVR. Definitely watch it tonight now.

 

[kgtest]

These sorts of Frontline episodes are interesting. Here are a few from prior years that are on my save list:

“The Power Of The Fed” (2021)

https://pbs.org/video/the-power-of-the-fed-zzeu12

“Money, Power and Wall Street” (2012 4-parter)

https://pbs.org/video/frontline-money-power-and-wall-street-part-one

“Ten Trillion and Counting” (2009)

https://pbs.org/video/frontline-ten-trillion-and-counting

I've watched all these. Great list.

 

[kgtest]

I'm a little confused though, as a lot of the clips in this video I have seen before on Frontline in another documentary. Of course with the exception of the SVB intro clip. I think most of this had aired previously on Frontline at some point in the past month

 

[Graybeard]

With all its faults - and there are many - gold is "real" and is accepted any place on the planet as money - and has been so since recorded history. Fiat currencies are "real" as long as people believe they are valuable. The minute they fall out of favor, they can become worthless. Name 5 fiat currencies that existed (in current form) even 100 years ago. By the way, the dollar doesn't fit that definition. I don't suggest going to gold but I look at our money as simply better than the other fiat currencies right now. Not a very good recommendation in my opinion, but I'm no expert so YMMV.

Gold is a store of value and may keep up with inflation, I have heard in the past and today it buys a good suit, but you can't buy anything with a piece of gold unless you are in a region where gold mining is being done. For example, in Alaska you can buy things at a small store who will accept gold for say ammo or from a person for say lumber they milled with gold but you can't do it at Walmart or a large chain grocery store or gas station. Having a 1 oz gold bar isn't like a few $100 bills where you can use some of it and get change back from the $100. You would be hard pressed to break or scrape off $79 from a gold bar. Maybe gold coins in smaller denominations would work. GLD or IAU are taxed at collectible rates which last I knew was 28% minimum, maybe best held in a tax deferred account or Roth IRA. I'm pretty leery of gold but if you buy it at the right time it can be profitable.