The Banking Lending Crisis with FEDUPBIZOWNER

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“I think banks are scared shitless. I think they know what’s sitting on their books and they’re praying like holy hell that they will still be solvent in 12 months.”
— FEDUPBIZOWNER

SHOW DESCRIPTION

Location: Squadcast
Date: Wednesday 5th August
Company: N/A
Role: N/A

Throughout 2019 and early 2020, the global economy was signalling fragility. However, with the rapid spread of COVID19 and the resulting lockdowns, the global economy is heading into a deep recession.

As governments have worked to control the virus, economies are opening back up. Across the world, governments are facing the challenge of stimulating these faltering economies while managing localised lockdowns.

The Fed announced a new effort to support the economy, including programmes for small and medium-sized businesses, via Main Street lending, however, banks are still, seemingly, reluctant to offer loans.

In this interview, I talk to anonymous Twitter account FEDUPBIZOWNER. We discuss COVID's impact on the lending markets if the banks are facing an insolvency crisis, why stock markets are hitting all-time highs and hedging with gold and Bitcoin.

TIMESTAMPS

00:04:17: Introductions
00:07:03: Freddy’s background
00:09:59: Economics of franchises
00:14:11: Business outlook in 2020
00:15:04: Differences to crash in 2008
00:19:20: Credit markets
00:23:08: FDIC and small business loans
00:26:42: Problems with SBAs
00:30:14: Societal changes
00:33:26: Concerns of the banks
00:40:42: Impacts of frozen lending markets
00:46:27: Illusion of the stock market
00:50:13: Parallels between gold and Bitcoin
00:52:15: Bitcoin concerns including asset tangibility 
00:55:46: Risk of Bitcoin competing with government 
01:00:05: Nation states owning Bitcoin
01:03:53: Hedging Bitcoin and volatility
01:08:20: Final comments

 

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SHOW NOTES

PodcastPeter McCormack