Michael Kao: Bank Bailout Allows The Fed To Tighten Even More

Forward Guidance

Michael Kao, former hedge fund manager and private investor, joins Jack Farley to share his thoughts on the turmoil in the banking sector, the consequences of the policy response from Washington, and the fate of the U.S. Dollar as the global reserve currency. Kao argues that the Fed’s recent assistance to U.S. banks allows the Fed to hike more in order to fight inflation.

Kao also shares his view on today’s consumer price index (CPI) reading, China, and the global oil market. Recorded at 1pm ET on March 14, 2023.

____

Follow Michael Kao on Twitter: https://twitter.com/UrbanKaoboy

Follow Kaoboy Musings on Substack: https://urbankaoboy.substack.com/about

Follow Jack Farley on Twitter https://twitter.com/JackFarley96

Follow Forward Guidance on Twitter https://twitter.com/ForwardGuidance

Follow Blockworks on Twitter https://twitter.com/Blockworks_

____

Use code GUIDANCE10 to get 10% off Permissionless 2023 in Austin:

https://blockworks.co/event/permissionless-2023

Research, news, data, governance and models – now, all in one place. As a listener of Forward Guidance, you can use code GUIDANCE10 for a 10% discount when signing up to Blockworks Research https://www.blockworksresearch.com/

____

Get top market insights and the latest in crypto news. Subscribe to Blockworks Daily Newsletter:

https://rb.gy/5weeyw

Market commentary, charts, degen trade ideas, governance updates, token performance, can’t-miss-tweets and more. Subscribe to the Blockworks Research “Daily Debrief” Newsletter: https://rb.gy/feusos

____

Timestamps:

(00:00) Intro

(00:36) The Banking Panic Could Be Over, Says Michael Kao

(09:14) It's The Shadow Banking Sector That's In Trouble

(14:11) Has The Bank Panic Prevented The Fed From Tightening Monetary Policy?

(17:46) Has The Bank Panic Prevented The Fed From Tightening Monetary Policy?

(20:59) Blockworks Research

(21:57) Do We Have Structural Inflation?

(25:03) Black Swan: Oil To $300

(37:33) China's Oil Demand Is Lower Than Expected

(41:13) The U.S. Dollar Wrecking Ball

(46:24) Permissionless Ad

(47:26) China's Hidden Debt

(55:36) How Stable Is The U.S. Dollar As The Global Reserve Currency?

(01:08:36) Closing Thoughts On Bank Panic & Federal Reserve

____

Disclaimer: Nothing discussed on Forward Guidance should be considered as investment advice. Please always do your own research & speak to a financial advisor before thinking about, thinking about putting your money into these crazy markets.