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March 8, 2021 | James Grant on Bitcoin and Other Bubbles

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel ( Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog:

This segment is a worthwhile overview of the history of interest rates, the Federal Reserve, asset bubbles and their deleterious effects on the economy and savers.

One caveat:  I disagree entirely with Jim’s dismissal of Tesla vehicles (as distinct from its bubblicious share price).  Having driven one for three years now, with zero fuel and maintenance costs, it’s quite clear that the technology has earned its world-leading status.

The balance sheet of the Federal Reserve continues to surge at an unprecedented rate, up 83% y/y to a historic level, $7.59 trillion at the latest count.

According to our WEALTHTRACK podcast guest, financial historian, and long-time market observer James Grant, interest rates, the “central pricing mechanism for financial markets” have been pushed to artificially low levels by the Fed’s policies which have created numerous market bubbles. He cites Bitcoin as one of the most extreme examples. Here is a direct video link.

“The more intense the craze the higher the order of intellect that succumbs to it…this is a bubble like all others…when the time comes, when greed turns to gravity, you’re not goin’ to get out.”

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March 8th, 2021

Posted In: Juggling Dynamite

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