To download the podcast – Right mouse click here (duration; 36:54)
The markets in focus
-A discussion of the repo and reverse repo markets; The Fed ostensibly has a liquidity problem, but if asset prices fade, this dilemma should self-correct.
-If asset prices fall, the glut of liquidity may shrink and the sudden drop of $1.2 trillion in crypto asset valuations may do the heavy lifting for the Fed, and help to shrink this liquidity oversupply.
-Despite what Zerohedge and the crypto shills claim, the governments and MSM have been very supportive of the crypto markets. The crypto market is the only truly unregulated market, and any other market would never be able to operate under such circumstances. I suspect cryptos will be the cause of a number of Hegelian dialectic crises in the future. Unregulated cryptos are already wreaking havoc in the ransomware markets.
-Stocks and commodities have remained in a weekly overbought holding pattern and I am still a seller of rallies on most assets
-How the Fed ended up becoming the lender of choice as opposed to the lender of last resort.
Recent changes in the world are accelerating my investment and personal timeline
-The world in a post-COVID environment is a much more openly hostile one to investors, especially to those in the real estate sector.
-States and counties have become emboldened to treat real estate investors with circumspection and contempt. These tax jurisdictions are planning on squeezing these people for as much money as possible. There will be a sharp increase in state and federal government tax audits and monitoring than in the recent past.
-States like Maryland and the blue states will become more openly recalcitrant and hostile in the future. They plan on using race and wealth disparity as excuses.
-Real estate investors have been making a lot of money and the states want some of it. Look for changes to the tax codes.
-As long as we hold our worldviews dearly, we cannot continue investing through social proof. We need to act unilaterally and quickly. Many personal and investment strategies take several years to complete. If we wait until mid-decade, it will be too late.
-My plans going forward until mid decade.