The Higher Standard

U.S. consumer spending increased more than expected in April, boosting the economy's growth prospects for the second quarter, and inflation picked up, which could prompt the Federal Reserve to raise interest rates again next month. The growth picture was further brightened by other data from the Commerce Department on Friday showing a surprise rebound last month in orders of manufactured non-defense capital goods excluding aircraft, a closely watched proxy for business spending plans.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss the debate among Fed officials, centered on concerns over inflation not cooling fast enough and the labor market’s persistent strength. Chris and Saied look at the increase in real GDP, which reflected increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in private inventory investment and residential fixed investment.They also offer some thoughts on a jump in consumer spending of 0.8% last month after gaining 0.1% in March. Economists had forecast consumer spending, which accounts for more than two-thirds of U.S. economic activity, would rise 0.4%.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:The difference between Gross DOmestic Income (GDI) and Gross Domestic Product (GDP).Why the National Bureau of Economic Research has not declared a recession.Why the additional stress placed on all corporations and profitability will be very visible in July.And so much more..."Gross Domestic Income GDI Suggests US Is In Recession Right Now" (Zero Hedge)"Strong US consumer spending, inflation readings put Fed in tough spot" (Reuters)"Fed officials debated need for rate hike at last meeting, minutes show" (CNN)"A Housing Bust Comes for Thousands of Small-Time Investors" (The Wall Street Journal)

Deposit runs have led to the collapse of three U.S. banks this year, but another concern is building on the horizon. According to JPMorgan Chase CEO Jamie Dimon, commercial real estate is the area most likely to cause problems for lenders. U.S. banks have experienced historically low loan defaults over the last few years due to low interest rates and the flood of stimulus money unleashed during the Covid-19 pandemic. However, the Federal Reserve has hiked rates to fight inflation, which has changed the landscape. Commercial buildings in some markets, including tech-centric San Francisco, may take a hit as remote workers are reluctant to return to offices.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss an academic paper from economist Olivier Blanchard and former Federal Reserve Chair Ben Bernanke, who guided the central bank and the U.S. economy through the Great Recession, in which they argue that central bankers still have work to do to bring down inflation.Chris and Saied look at news that San Francisco has the largest sublease market of any U.S. metropolitan area, with 7.2% of its overall office inventory available for sublease, having doubled that figure since late 2019.They also offer some thoughts on the rise of asset managers, private equity funds and insurers, as the regional banking crisis supercharges the expansion of these non-bank lenders into areas such as providing consumer car loans and mortgages, or financing the construction of buildings.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why the debt ceiling 'crisis' is a non-event.Private equity and how it differs from real estate syndicators.Special Purpose Acquisition Companies (SPACs): a new way to take companies public.And so much more...Resources:"Here's how much emergency savings you need amid economic uncertainty, according to financial advisors" (CNBC via Instagram)"Fed Chair Powell says rates may not have to rise as much as expected to curb inflation" (CNBC)"Jamie Dimon warns souring commercial real estate loans could threaten some banks" (CNBC)"Analysis: Private equity steps up lending as U.S. banks pull back" (Reuters)"Former Fed Chair Ben Bernanke says there’s more work ahead to control inflation" (CNBC)"What's the right emergency fund amount?" (Vanguard)"These Companies Are Trying To Shed Massive Amounts of San Francisco Office Space" (SF Standard)"The Majority of U.S. Businesses Have Fewer Than Five Employees" (Census.gov)"PacWest to Sell $2.6 Billion Real Estate Loans at Discount" (Bloomberg)"Fed Rate Increases Hit Small Businesses the Hardest" (The Wall Street Journal)"Regional Banks Rallied Last Week. Traders Continued to Short the Sector" (Bloomberg)"Fed Official Is Open to Forgoing June Rate Hike" (The Wall Street Journal)

Federal Reserve Bank of Cleveland President Loretta Mester has said that she does not think the U.S. central bank is at a point yet where it can hold interest rates steady for a period of time, given how stubborn inflation is. Federal Reserve Chair Jerome Powell has signaled the central bank may pause further rate hikes as it assesses the impact of its past tightening, as well as the effect of recent bank sector stress on lending and credit.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss news that JPMorgan sees treasuries as the best hedge against a slowdown, and sees the possibility of 10-year rates falling below 2.5% in the event of a deep recession. The 10-year Treasury rate was trading around 3.53% on Wednesday, after rising as high as 4.09% earlier in the year.Chris and Saied look at comments from Atlanta Federal Reserve Bank President Raphael Bostic, who said that, if he were voting on monetary policy today, he would vote to hold interest rates steady, but added there is still a lot of data to come before the Fed's meeting in June.They also offer some thoughts on Elon Musk's assertions that he doesn’t care if his inflammatory tweets scare away potential Tesla buyers or Twitter advertisers.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why most people believe that a recession is inevitable at this point.Why, despite the fanfare in the media, we're not yet in a credit tightening cycle.The importance of looking at the actual data, not the intentions.Why Atlanta Fed President Raphael Bostic says he would not cut rates unless inflation fell farther than to mid to high 3%.And so much more...Resources:"Default Fears Rattle Main Street Investors" (The Wall Street Journal)"JPMorgan Asset Says Markets Are Right to Bet on US Rate Cuts" (Bloomberg)"Home Prices Posted Largest Annual Drop in More Than 11 Years in April" (The Wall Street Journal)"Fed's Mester says not yet at point where it can 'hold' rates" (Reuters)"Fed's Bostic: if vote on policy were today, would vote to hold steady" (Reuters)"Elon Musk: ‘I’ll say what I want, and if the consequence of that is losing money, so be it’" (CNBC)

According to a report from the Commerce Department, retail sales increased but fell short of expectations. The advanced sales report showed an increase of 0.4%, below the Dow Jones estimate for 0.8%. Excluding auto-related figures, sales increased 0.4%, which was in line with expectations. As the numbers are not adjusted for inflation, the headline increase equaled the 0.4% monthly rise in the consumer price index. On an annual basis, sales were up just 1.6%, well below the 4.9% CPI pace.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss news that stock in Home Depot tumbled more than 5%, or $13 a share, in premarket trading, which was worth about 100 points on the Dow Jones Industrial Average. Once trading opened, the stock recovered some of its gains, and was recently down about 1.5%, still big enough to shave about 30 points off the Dow.Chris and Saied look at a Census Bureau survey, showing that more Americans struggle to meet expenses now than in the immediate aftermath of the Covid-19 pandemic, when millions lost their means of employment. About 38.5% of American adults — or 89.1 million people — faced difficulty in paying for usual home expenses between April 26 and May 8. That’s up from 34.4% a year ago and 26.7% during the same period in 2021.They also offer some thoughts on the passing of Chicago real estate magnate Sam Zell, who earned a multibillion-dollar fortune and a reputation as “the grave dancer” for his ability to revive moribund properties.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why retail sales rose 0.4% in April, and why this is indicative of bad things to come.The concept of a real estate trust.A University of Michigan report showing that consumer sentiment is at an all-time low.Why Home Depot is warning of annual sales drop for the first time since 2009.And so much more...Resources:"Home Depot just forecast weak consumer demand — here’s what that could mean for the rest of the economy" (CNBC)"Almost 90 million American adults struggle to make ends meet, Census says" (Bloomberg Business)"Retail sales rose 0.4% in April, less than expected as consumers struggle with inflation" (CNBC)"Americans Curb Spending on Home Improvements" (The Wall Street Journal)"Home Improvement Goes on Hiatus" (The Wall Street Journal)"Experts Predict Home Improvement Spending to Decline by 2024" (M Report)

Total consumer debt hit a fresh new high in the first quarter of 2023, pushing past $17 trillion even amid a sharp pullback in home borrowing. According to a report from the New York Federal Reserve, the total for borrowing across all categories hit $17.05 trillion, an increase of nearly $150 billion, or 0.9% during the January-to-March period. That took total indebtedness up about $2.9 trillion from the pre-Covid period ending in 2019.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss news that famed short-seller Michael Burry and his hedge fund, Scion Asset Management, snapped up 150,000 shares of First Republic prior to its purchase by JP Morgan, worth about $2 million at the end of the first quarter.Chris and Saied look at A Gallup poll indicating that 36% of US adults say they have a “great deal” or a “fair amount” of confidence that the Federal Reserve chairman would do or recommend the right thing for the economy, a precipitous drop which is now at or below his predecessors’ as the central bank wages its war against inflation.⁣They also offer some thoughts on recently-released Federal Reserve data, showing that deposits at U.S. banks climbed to $17.16 trillion in the week ended May 3, up about $67 billion, ticking up from the lowest level in nearly two years while bank lending was little changed at a record level.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why inflaton in Argentina has sped up to 109% as currency weakens before the election.The three steps to a Federal Reserve pivot.Why Warren Buffett and Michael Burry are doubling down in the banking sector.Why the FOMC needs to see inflation going down on a fast enough trend.And so much more...Resources:"With $1B in back rent due, LA landlords struggle to survive" (The RealDeal via Instagram)"Consumer debt passes $17 trillion for the first time" (CNBC via Instagram)"Michael Burry loaded up on bank stocks during the banking crisis" (Bloomberg Business via Instagram)"Paul Tudor Jones says the Fed is done raising rates, stocks to finish the year higher" (CNBC via Instagram)"Confidence in Jerome Powell has plunged to a record low" (Bloomberg Business via Instagram)"What happens when the prophecy of the blockchain fails?" (Bloomberg Business via Instagram) "U.S. bank deposits rise in early May, lending little changed at record high" (Reuters)"US real estate investors are losing money on roughly 1 in 7 homes they sell — among the worst since 2016. And they're most likely to take a hit in these 5 cities" (Moneywise)"A problem for the housing market: People won’t quit their cheap mortgages" (The Washington Post)"US Households Show Signs of Stress as New Delinquencies Rise" (Bloomberg)"Argentina to Hike Rates in Bid to Stem Inflation Crisis" (Bloomberg)

The number of Americans filing new claims for unemployment benefits have jumped to a 1-1/2-year high, pointing to cracks in the labor market as demand slows, potentially giving the Federal Reserve room to halt further interest rate increases next month. With demand cooling, inflation pressures are subsiding. Data from the Labor Department indicates that producer prices rebounded modestly in April, leading to the smallest annual increase in wholesale inflation in more than two years.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss a Labor Department report showing that the consumer price index (CPI), which measures the cost of a broad swath of goods and services, increased 0.4% for the month, in line with the Dow Jones estimate.Chris and Saied look at comments from JPMorgan Chase CEO Jamie Dimon that markets will be gripped by panic as the U.S. approaches a possible default on its sovereign debt, calling the default "potentially catastrophic" for the country.They also offer some thoughts on a statement by New York Federal Reserve President John Williams, who cautioned that interest rate increases will take a while to work their way through the economy before inflation returns to an acceptable level.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why services inflation is really consumer discretionary spending more than anything else.Why housing prices are excluded from the Labor Department’s CPI report.The odds of a Fed rate cut this year.Why the Fed's 'stress tests' for banks failed.And so much more...Resources:"Jamie Dimon warns panic will overtake markets as US approaches debt default" (CNBC via Instagram)"The family behind First Citizen's Bank is $1 billion richwer since SVB" (Bloomberg Business via Instagram)"AirBnB stock craters - founders lose $4 billion in one day" (Forbes via Instagram)"Inflation rate eases to 4.9% in April, less than expectations" (CNBC)"Wholesale prices rose just 0.2% in April, less than estimate as inflation pressures ease" (CNBC)"Fed’s John Williams says rates could be increased if inflation doesn’t come down" (CNBC)"Worries linger about financial stability following bank rescue, Fed report shows" (CNBC)"US weekly jobless claims hit 1-1/2-year high; inflation subsiding" (Reuters)"Brits are being offered no-deposit 100% mortgage loans for the first time since 2008" (CNBC)"We May Be Getting Used to High Inflation, and That’s Bad News" (The Wall Street Journal)"Icahn, Under Federal Investigation, Blasts Short Seller" (The Wall Street Journal)"Inflation Eased in April but Remains Stubbornly High" (The Wall Street Journal)"Can Inflation Fall Fast Enough for the Fed?" (The Wall Street Journal)"How the Fed’s stress tests failed to stop a banking crisis" (Fortune)"Monthly Mortgage Payments Could Surge 22% If US Defaults" (Bloomberg)

The Pandemic Housing Boom saw a flood of institutional homebuying. Low interest rates, easy access to capital, soaring rents, and skyrocketing home values were just too good a deal for Wall Street types like Blackstone and iBuyer players like Opendoor Technologies to pass on. However, it seems that institutional homebuyers are pulling back. According to an analysis conducted by John Burns Research and Consulting, institutional investors — those owning over 1,000 homes — bought 90% fewer homes in January and February than they did in the first two months of 2022. Invitation Homes, the largest owner of U.S. single-family rental homes recently became a net seller. In the first quarter of 2023, Invitation Homes bought 194 homes while it sold off 297.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss the reasons that banks are going to choose to be strategic in the deployment of capital, partially because they want to keep as much of their balance sheets as possible, in case of a run on deposits, and partially because any loan they make today is going to be underwater if the Federal Reserve continues to increase rates.Chris and Saied look at news that shares of San Francisco-based PacWest Bancorp plunged after investors learned the regional bank was considering a sale. Despite thet fact that the bank has said it had not experienced a high number of customer withdrawals, the news still stoked fears of a potential surge in withdrawals among regional banks.They also offer some thoughts on the results of a survey from the National Federation of Independent Businesses (NFIB), a lobbying organization that represents small business owners nationwide, which shows that small business earnings rose to the highest levels in at least 45 years last month.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why the market is not concerned with interest rate increases.Why the US dollar needs to be the world's currency.Why the debt ceiling is going to have to be raised well before June 1.Why, in 2011, the debt ceiling crisis led to an S&P downgrade of US sovereign debt.And so much more...Resources:Wall Street is running away from the housing market. But why?Powell’s Bet Against Recession Looks Good — Minus the Credit Crunch and a DC StandoffFed report shows banks worried about conditions ahead, with focus on slowing economy and deposit outflowsOutlook for household spending slumped in April, New York Fed survey showsCorporate Stock Buybacks Help Keep Market AfloatWhat are the advantages of being the Nation that has the Reserve CurrencyThe Kardashev Scale - Type I, II, III, IV & V CivilizationJob growth totals 253,000 in April, beating expectations even as the U.S. economy slows

Employment openings pulled back further in March, hitting a nearly two-year low in a sign that the ultra-tight U.S. job market is loosening and possibly putting less pressure on inflation, according to a report by the Labor Department. The department’s Job Openings and Labor Turnover Survey showed that job vacancies totaled 9.59 million for the month, down from 9.97 million in February and below the FactSet estimate for 9.64 million. At the same time, layoffs and discharges jumped by 248,000 to just over 1.8 million, taking the rate as a share of the workforce up to 1.2% from 1%.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss a report from payroll processing firm ADP that states that private payrolls rose by 296,000 for April, above the downwardly revised 142,000 the previous month and well ahead of the estimate for 133,000.Chris and Saied look at Fed Chair Jerome Powell's recent press conference, in which he said that, "The run on Silicon Valley Bank was out of keeping with the speed of runs through history. And that now needs to be reflected in some way in regulation and in supervision.”They also offer some thoughts on the recent increase in the Fed's target range for its benchmark interest rate by 0.25%, while leaving its options open on future rate hikes.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why the entire regional bank sector is taking a significant pounding.Why the market doesn't believe a lot of what Fed Chair Jerome Powell is saying.The reason why so many knowledgeable people on the news and in social media seem to have no idea how banking works.The role of digital banking, providing depositors with quick access to their funds that they can move immediately.And so much more...Resources:" Dow tumbles more than 300 points as banking sector worries reignite before Fed rate decision" (CNBC)"Job openings fell more than expected in March to lowest level in nearly two years" (CNBC)"Private payrolls surged by 296,000 in April, much higher than expected, ADP says" (CNBC)"Fed recap: Here are Chair Powell’s market-moving comments after the latest rate hike" (CNBC)"Federal Reserve pushes interest rates above 5% for first time since 2007" (Yahoo! Finance)"Exclusive: US officials assessing possible 'manipulation' on banking shares" (Reuters)"Apple reportedly attracted $1 billion in deposits into its new high-yield savings account in just 4 days" (BusinessInsider)"As JPMorgan Scoops Up First Republic, Are Banks Facing Their ‘Minsky Moment?'" (Payments.com)"US job openings fall to a nearly 2-year low of 9.6 million. Fewer people are quitting too" (MarketWatch)"For Banks Under Stress, There’s a Federal Backstop That Provides Help Without Stigma" (Bloomberg)"Regional Bank Stocks Close at Lowest Level Since 2020" (Wall Street Journal)"What a Fed Debate 17 Years Ago Reveals About Its Rate Deliberations Now" (Wall Street Journal)

Regulators have seized First Republic Bank and sold its assets to JPMorgan Chase & Co in a deal to resolve the largest U.S. bank failure since the 2008 financial crisis and draw a line under a lingering banking turmoil. First Republic was among regional U.S. lenders most battered by a crisis in confidence in the banking sector in March, when depositors fled en masse from smaller banks to giants like JPMorgan as they panicked over the collapse of two other mid-sized U.S. banks.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss comments from JPMorgan Chase CEO Jamie Dimon, who said that the crisis that led to the downfall of three regional U.S. banks in recent weeks is largely over after the resolution of First Republic.Chris and Saied look at a warning from billionaire investor Charlie Munger, vice Chairman of Berkshire Hathaway, who sees trouble ahead for the U.S. financial system because American banks are "full of... bad loans" due to falling property prices in the country in a situation that seems very similar to what caused the banking crisis in 2008.They also offer some thoughts on recently-released economic data showing that inflation rose again in March, despite a year’s worth of interest rate increases. This is data that the Federal Reserve watches very closely.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why you can’t compare the large global banks to regional community banks.Why the Federal Deposit Insurance Corporation (FDIC) will share losses with JP Morgan on First Republic loans.What other banks are doing to prepare for a possible rate hike.Why banks are not doing loans right now.And so much more...Resources:"Australia’s central bank hikes rates by 25 basis points; Asia-Pacific markets mixed" (CNBC)"Jamie Dimon says ‘this part of the crisis is over’ after JPMorgan Chase buys First Republic" (CNBC)"Key inflation gauge for the Fed rose 0.3% in March as expected" (CNBC)"Charlie Munger says the U.S. commercial property market is in trouble: FT report" (CNBC)"Big banks including JPMorgan Chase, Bank of America asked for final bids on First Republic" (CNBC)"The U.S. could hit the debt ceiling by June 1, much sooner than expected, Yellen warns" (CNBC)"Charlie Munger Sounds The Alarm on Issue That Could Bring Down the U.S. Economy" (TheStreet)"Warren Buffett might help rescue the banks again - but he'll probably make less money this time around" (Markets Insider)"Renting is still far less expensive in Dallas-Fort Worth than in other metros" (The Dallas Morning News)"Regulators seize First Republic Bank, sell assets to JPMorgan" (Reuters)"Ranked: The U.S. Banks With the Most Uninsured Deposits" (Visual Capitalist)"A Tax Loophole Makes EV Leasing a No-Brainer in the US" (Bloomberg)"First Republic Bank Is Seized, Sold to JPMorgan in Second-Largest U.S. Bank Failure" (The Wall Street Journal)"The Building Boom Is Prolonging Market Pain" (The Wall Street Journal)"Why First Republic Bank Collapsed" (The Wall Street Journal)

Growth in the U.S. slowed considerably during the first three months of the year as interest rate increases and inflation took hold of an economy largely expected to decelerate even further ahead. According to the Commerce Department, gross domestic product (GDP) rose at a 1.1% annualized pace in the first quarter. Economists surveyed by Dow Jones had been expecting growth of 2%.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss a report stating that U.S. home prices, as measured by the seasonally adjusted Case-Shiller National Home Price Index, rose 0.15% between January and February. This month-over-month national home price uptick comes after national prices had declined every month between June 2022 and January 2023.Chris and Saied look at news showing the continued decline of First Republic Bank's stock, an ongoing rout that has erased 60% of its value just this week on concerns about the bank's financial health in the wake of two other bank collapses.They also offer some thoughts on the apparent end of the severe contraction in the US housing market over the past year, a bottoming-out which is raising hopes on Wall Street that America could avoid a recession altogether.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:The definition of gross domestic product (GDP).Why businesses have been drawing down inventory and cutting equipment purchases.Why home values don’t just drop across the country at the same time.Why historically, housing has been a critical driver of the broader business cycle.And so much more...Resources:"GDP Report Shows Economic Growth Slowed in First Quarter" (The Wall Street Journal)"Bankers’ pitch to save First Republic: Help us now, or pay more later when it fails" (CNBC)"Housing market correction is running on fumes as Case-Shiller reports the first U.S. home price uptick since June—these 2 charts tell the story" (Fortune)"The housing market's bottoming-out raises hopes that the US can avoid a recession" (Bloomberg Business)"First Republic Bank Is a Problem With No Easy Solution" (The Wall Street Journal)"Google Ad Revenue Drops for Second Straight Quarter" (The Wall Street Journal)

Many critics have blasted new rules from the Biden administration that will force good-credit homebuyers to subsidize the costs of buyers with poor credit. One former Obama housing official is calling out the "unprecedented" move, arguing this is "not the way" to bring in more home buyers. New rules from the Federal Housing Finance Agency (FHFA) will allow consumers with lower credit ratings and less money for a down payment to qualify for better mortgage rates than they otherwise would have. In turn, the costs are expected to be passed on the those with good credit. The rules are set to go into effect May 1.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss comments from tech investor Chamath Palihapitiya, who said two years ago that bitcoin had replaced gold and predicted the digital currency would climb to $200,000, who is now saying that "Crypto is dead in America," blaming its demise largely on regulators, who have gotten much more aggressive in their pursuit of bad actors in the industry.Chris and Saied look at reports that Bed Bath and Beyond has filed for Chapter 11 bankruptcy protection after it failed in several last-ditch efforts to raise enough money to keep the company alive. It had been warning of a potential bankruptcy since early January, when it issued a “going concern” notice that it may not have the cash to cover expenses after a dismal holiday season.They also offer some thoughts on real estate magnate Sam Zell's assertion that "Remote work is a bunch of bullshit," speaking at a luncheon at NYU’s Schack Institute of Real Estate as part of its annual REIT Symposium.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:What is Moody's and why do its ratings matter?Why working from home is here to stay, but it's not for everyone.Why Google CEO’s compensation package includes $6 million for personal security.Why Coinbase's CEO Brian Armstrong says his company is preparing for a years-long court battle with the commission.And so much more...Resources:"Former Obama housing chief slams Biden’s ‘unprecedented’ mortgage plan: ‘Not the way to do it’" (Fox Business)"Frank's Charlie Javice moved millions from JPMorgan to Signature months before the bank collapsed" (Bloomberg Business)"More US consumers are falling behind on payments" (Yahoo! Finance)"Amazon, Microsoft, Meta, Alphabet lead earnings rush: What to know this week" (Yahoo! Finance)"‘Crypto is dead in America,’ says longtime bitcoin bull Chamath Palihapitiya" (CNBC)"Meta has started its latest round of layoffs, focusing on technical employees" (CNBC)"Google’s 80-acre San Jose mega-campus is on hold as company reckons with economic slowdown" (CNBC)"BuzzFeed News Is Shutting Down, and Vice World News Could Be Next" (The Wall Street Journal)"Bed Bath & Beyond Files for Bankruptcy" (The Wall Street)"First Republic Lost $100 Billion in Deposits in Banking Panic" (The Wall Street Journal)"The Labor Market Might Be Bending; It Isn’t Breaking" (The Wall Street Journal)"Moody’s Downgrades 11 Regional Banks, Including Zions, U.S. Bank, Western Alliance" (The Wall Street Journal)"The Repo Man Returns as More Americans Fall Behind on Car Payments" (Bloomberg)"Remote work is ‘bull***t’ and the ‘office situation will change,’ says real estate billionaire Sam Zell: ‘People need to be together’" (Fortune)“US existing-home prices fall nearly 1% in March, the biggest drop in a decade” (MarketWatch)

The US economy stalled in recent weeks, with hiring and inflation slowing and access to credit narrowing, the Federal Reserve said in its Beige Book survey of regional business contacts. "Overall economic activity was little changed in recent weeks," the Fed said in the report, published two weeks before each meeting of the policy-setting Federal Open Market Committee. "Several districts noted that banks tightened lending standards amid increased uncertainty and concerns about liquidity. Overall price levels rose moderately during this reporting period, though the rate of price increases appeared to be slowing."In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss a recent survey from LendingTree Inc., indicating that US consumers are increasingly using installment loans to pay for everyday items like groceries, highlighting the financial pain wrought by the worst inflation outbreak in four decades.Chris and Saied look at Meta’s latest round of job cuts, as employees with technical backgrounds like user experience, software engineering, graphics programming are being let go.They also offer some thoughts on earnings season, demystifying some of the terminology and concepts that get tossed about so that you can better understand what earnings reports mean for you and the economy.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:How credit is being impacted by the stalling US economy.The Federal Reserve's Beige Book: What it is and why it matters.The rise of 'buy now, pay later' services, and the negative impact they're having on consumers.The continued rash of layoffs in the tech sector - and soon, the banking sector as well.And so much more...Resources:"US Economy Stalls as Credit Narrows, Fed’s Beige Book Says" (Bloomberg)"Americans Go Deeper Into Debt as They Use Buy Now, Pay Later Apps for Groceries" (Bloomberg)"More US consumers are falling behind on payments" (Yahoo! Finance)"Meta has started its latest round of layoffs, focusing on technical employees" (CNBC)

According to data from Redfin, the median U.S. asking rent fell 0.4% year over year to $1,937 in March. That’s the first U.S. Treasury Secretary Janet Yellen has said that banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. In a recent interview, Yellen said that policy actions to stem the systemic threat caused by last month's failures of Silicon Valley Bank and Signature Bank had caused deposit outflows to stabilize, "and things have been calm."In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss the launch of Apple's 'Apple Card' savings account, with a 4.15% annual percentage yield. It requires no minimum deposit or balance, Apple said, and users can set up an account from the Wallet app on their iPhones.Chris and Saied look at a report from investment research firm Morgan Stanley Capital International (MSCI), indicating that investors have grown voracious for apartment-building acquisitions in 2021 and 2022, having purchased $355.5 billion and $299.2 billion worth of apartment buildings, unprecedented sums that far surpassed the previous $194 billion record of multifamily sales in 2019.They also offer some thoughts on news that the National Association of Home Builders / Wells Fargo Housing Market Index climbed to 45 in April, a 1-point gain, the highest since September. The index stood at 77 in April 2022.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why the Fed believes that unemployment is an inflationary trend.Why Chris believes inflation may be moderating.The degree of liability on the line for banking executives in the wake of the current crisis.Why difficulty getting loans and a lack of inventory has created a stalemate in the housing market.And so much more...Resources:"Yellen says US banks may tighten lending and negate need for more rate hikes" (Reuters)"Fed should let the economy equilibrate, says former Fed nominee Judy Shelton" (CNBC)"Warren Buffett Doesn't Hold Back When Asked About Failed Bank Execs" (TheStreet)"Credit-card balances have hit historic highs. Here’s why that’s a worrying sign." (Market Watch)"NO ATMs, no fees, and a 103-year old vault: Inside America's Smallest Bank" (Businessweek via Instagram)"Apple launches its savings account with 4.15% interest rate" (CNBC)"Rental Market Tracker: U.S. Rents Post First Annual Decline in Three Years" (Redfin)"Landlords pumped billions into apartment buildings during the pandemic. That bet could now go horribly wrong." (Yahoo! Finance)"Apple launches its savings account with 4.15% interest rate" (CNBC)"Charlie Javice, the founder accused of fraud by JPMorgan, is arrested as DOJ files criminal charges" (Fortune)"Bosses Pay Workers to Move Closer to Offices" (The Wall Street Journal)"Homebuilder sentiment rises in April, as builders grab near-record share of the market" (CNBC)"$134.1M! Wells Fargo CEO's retirement payout even bigger than thought" (USA Today)

Released Federal Reserve documents seem to indicate that fallout from the U.S. banking crisis is likely to tilt the economy into recession later this year. Minutes from the March meeting of the Federal Open Market Committee (FOMC) included a presentation from staff members on potential repercussions from the failure of Silicon Valley Bank and other tumult in the financial sector that began in early March.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss a report from the Labor Department indicating that US producer prices unexpectedly fell in March as the cost of gasoline declined, along with signs that underlying producer inflation was subsiding.Chris and Saied look at analyst's estimates, suggesting that deposits at JPMorgan Chase, Wells Fargo and Bank of America will tumble $521 billion from a year earlier, the biggest drop in a decade.They also offer some thoughts on criminal fraud charges brought by the Department of Justice against Charlie Javice, founder and former CEO of Frank, a startup college financial planning company for students, in which they allege that she "engaged in a brazen scheme" when she sold her company to JPMorgan Chase in 2021.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:The statistics that can be found behind the CPI report.The two main problems with the shelter component of the CPI report.Why the Fed expects a banking crisis to cause a recession this year.The ins and outs of the Charlie Javice fraud case.And so much more...Resources:"US consumer prices rise moderately; underlying inflation too hot" (Reuters)"US labor market gradually losing steam; producer inflation cooling" (Reuters)"U.S. producer prices unexpectedly fall in March" (Reuters)"Fed expects banking crisis to cause a recession this year, minutes show" (CNBC)"Top US banks to reveal $521 billion deposit drop, the most in a decade” (Bloomberg Business)"Deposit Crisis Sets Up a Tough First Quarter for All but the Biggest Banks" (The Wall Street Journal)"Charlie Javice, the founder accused of fraud by JPMorgan, is arrested as DOJ files criminal charges" (Fortune)"The Fed’s efforts to fight housing inflation by hiking interest rates has backfired, Cramer says" (CNBC)"Inflation rises just 0.1% in March and 5% from a year ago as Fed rate hikes take hold" (CNBC)"Bank Volatility to Cut U.S. Economic Growth, IMF Says" (The Wall Street Journal)"Fed expects banking crisis to cause a recession this year, minutes show” (CNBC)"Fed Keeps May Interest-Rate Increase on Table Despite Expected Recession" (The Wall Street Journal)

According to the Labor Department, payrolls grew by 236,000 for the month, compared to the Dow Jones estimate for 238,000 and below the upwardly revised 326,000 in February. The unemployment rate ticked lower to 3.5%, against expectations that it would hold at 3.6%, with the decrease coming as labor force participation increased to its highest level since before the Covid pandemic.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss Nouriel Roubini's continued calls for disaster, stating that neither the US central bank nor the federal government will have the maneuvering room needed to sufficiently stimulate the economy.Chris and Saied look at a survey by recruiter Robert Walters of 3,000 white collar workers who moved jobs during the pandemic, found that 71% wanted to return to their pre-pandemic employer.They also offer some thoughts on a report from Walmart indicating that it expects about 65% of its stores to be serviced by automation by the end of its fiscal year 2026, just days after revealing plans to lay off more than 2,000 people at facilities that fulfill online orders.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why job growth in March is not ideal when the Fed is taken into account.Why a strong jobs report hurts the services inflation, something that has not come down since the last CPI report.Why the Saudis and OPEC are moving away from the US dollar.Insight on community banks and their loan loss provisions.And so much more...Resources:"Bosses are training employees to be influencers - after long discouraging social media posts about work" (Forbes via Instagram)"Who is Nouriel Roubini, Wall Street's 'Dr. Doom' economist who has warned of catastrophe for 2 decades?" (Markets Insider)"Morgan Stanley analysts are forecasting something ‘worse than in the Great Financial Crisis’ for commercial real estate" (Yahoo! Finance)"Bank Failures. High Inflation. Rising Rates. Is the Resilient Jobs Market About to Crack?" (The Wall Street Journal)"Private payrolls rose by 145,000 in March, well below expectations, ADP says" (CNBC)"Job growth totals 236,000 in March, near expectations as hiring pace slows" (CNBC)"Bosses Want Hard Workers — So They’re Hiring Older People" (The Wall Street Journal)"Great Resignation becomes Great Regret as workers long for their pre-Covid jobs" (Yahoo! Finance)"Walmart aims for 65% of stores to be automation serviced by 2026" (Yahoo! Finance)"Here's how many U.S. workers ChatGPT says it could replace" (Yahoo! Finance)"The coming commercial real estate crash that may never happen" (CNBC)"Diddy still pays Sting ‘$5,000 a day’ for sampling his hit song ‘Every Breath You Take’ 26 years ago" (CNBC)"U.S. Debt to GDP Ratio 1989-2023" (Macrotrends)

One of the world’s most well-known economists believes the banking crisis is far from over, and that U.S. authorities are merely buying themselves some time by insisting the banking system is “sound.” Nouriel Roubini, chief executive of consulting firm Roubini Macro Associates, argued on Friday that the financial system will be unable to cope with the sheer scale of private and public debt that has already been amassed, spawning a “trilemma” that will soon trigger another phase of panic.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss the news that an inflation gauge that the Federal Reserve follows closely rose slightly less than anticipated in February, providing some hope that interest rate hikes are helping ease price increases.Chris and Saied look at comments from asset management giant BlackRock stating that investors are too confident the Federal Reserve will cut interest rates this year and could pay the price later.They also offer some thoughts on Jim Cramer's assertion that he’s still searching for the first sign of a recession, even though it’s all anyone seems to be talking about.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why Moody’s expects home prices to decline about 4% both in 2023 and in 2024.The impact of the Federal Reserve’s rate increases on banks.Why the Fed is on track to lose 100 billion by the end of the year.Why markets are betting that the Fed will start cutting rates by July.And so much more...Resources:"Key Fed inflation gauge rose 0.3% in February, less than expected" (article from CNBC)"Home prices suddenly jump after several months of declines" (article from CNBC)"Bank Stress, Softer Inflation Just Made Fed’s Life Easier" (article from The Wall Street Journal)"BlackRock warns that investors are making a mistake by betting on the Fed to cut rates" (article from CNBC)"‘Dr. Doom’ Nouriel Roubini warns economic ‘trilemma’ is making a financial crash inevitable" (article from Fortune)"A recession may be coming, but Jim Cramer says he’s not seeing the early signs yet" (article from CNBC)

$47 billion. That's the amount of market capitalization Charles Schwab has had wiped out in just one month. The stock fell 33% between Feb. 28 and March 31. At the end of February, Charles Schwab's shares were trading at around $77.92. A month later, the price fell to $52.38. This is Charles Schwab's worst month since the October 1987 stock market crash, known as Black Monday. That day, the Dow Jones index lost 508 points, a decline of 22.6% and the largest daily decline in a stock market index at the time. Only the drop by 76% of the Icelandic stock market in 2008 would exceed this record.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss Federal Reserve data, showing that depositors have removed another $126 billion from U.S. banks during the week ending March 22. The biggest 25 banks lost $90 billion on a seasonally adjusted basis. Smaller banks, which suffered massive withdrawals the previous week as regulators seized regional lenders Silicon Valley Bank and Signature Bank, were able to stabilize their outflows.Chris and Saied look at a story from Forbes, indicating that more than 136,000 people lost their jobs in major layoffs at U.S. companies over the fiscal quarter ending this week, more than the prior two quarters combined, as tech and manufacturing layoffs, led by Amazon, Google, Meta and Microsoft, surged.They also offer some thoughts on new housing market data, showing that existing home sales dropped in 12 of the last 13 months and existing home prices peaked last June. The surge of home prices during the height of the pandemic and the jump in mortgage rates since the Federal Reserve began raising interest rates last March dampened home demand.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why cash remains king in this economy.How consumers can guage buy or sell opportunities.Why McDonald’s is closing its U.S. corporate offices as it lays off hundreds of workers.Why there's been mostly silence from the National Bureau of Economic Research.And so much more...Resources:"Depositors yank another $126 billion from US banks" (article from Yahoo! Finance)"Charles Schwab Loses $47 Billion in Market Value in One Month" (article from TheStreet)"136,000 laid off in major US job cuts this quarter - more than prior two quarters combined” (Forbes via Instagram)"McDonald's temporarily shuts US offices, prepares layoff notices, Wall Street Journal reports" (article from Reuters)"US Housing Market in Trouble: Moody's Predicts Home Prices Will Fall in 2023 and 2024" (article from TheStreet)"Instagram sold 44,000,000 blue checks in one day at $15 a check" (DJ Key via Instagram)"McDonald’s closes corporate offices as it lays off hundreds of workers" (article from CNBC)

As the US banking crisis drags on, investors are starting to unearth risks within Charles Schwab that have been hiding in plain sight. Unrealized losses on the firm’s balance sheet, loaded with long-dated bonds, ballooned to more than $29 billion last year. At the same time, higher interest rates are encouraging customers to move their cash out of certain accounts that underpin Schwab’s business and bolster its bottom line.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss news that Credit Suisse, the collapsed Swiss bank taken over by UBS Group in a hastily arranged bailout, has provided a safe haven for wealthy American clients to hide assets from the IRS — even after it was caught and prosecuted for doing the same thing more than a decade ago, according two former Credit Suisse bankers who are working with the U.S. government as whistleblowers.Chris and Saied look at a report from the Labour Department, indicating that jobless claims for the week ended March 25 totaled 198,000, up 7,000 from the previous period and a bit higher than the 195,000 estimate.They also offer some thoughts on the recent news that Binance Holdings, the world’s largest cryptocurrency exchange, and CEO Changpeng "CZ" Zhao, are being sued by a US regulator for allegedly breaking trading and derivatives rules. The Commodity Futures Trading Commission said Binance shirked its obligations by not properly registering with it.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Where Silicon Valley Bank falls in line with the other banks across the country.How a company’s market capitalization is estimated.Why pending home sales were up 0.8% month over month in February.The concept of a mansion tax.And so much more...Resources:"First Citizens shares soar 50% after the bank buys a large chunk of failed Silicon Valley Bank" (article from CNBC)"Where Financial Risk Lies, in 12 Charts" (article from The Wall Street Journal)"Charles Schwab's $7 trillion empire built on low rates is showing cracks" (Bloomberg Businessweek via Instagram)"Minneapolis Fed chair Neel Kashkari says "fundamentally, the banking system is sound"" (CBS News)Debt on Blackstone buildings 47% more than portfolio's worth" (The RealDeal via Instagram)"Apple plans to launch Apple Pay later - allowing users to split purchases into four payments with no additional fees” (Complex via Instagram)Nick Gerli via Twitter“Jobless claims edge up to 198,000, higher than expected” (article from CNBC)"Binance crypto exchange and CEO "CZ" Zhao sued by US regulator" (Bloomberg Business via Instagram)"Look: The Brutal Layoff Email Disney CEO Bob Iger Sent Employees Today" (article from TheStreet)StockMKTNewz - Evan via Twitter"Higher Rates Are Coming for U.S. Companies" (article from The Wall Street Journal)"Markets Are Wrong on US Rate-Cut Bets, BlackRock Says" (article from Yahoo! Finance)"A Tale of Two Housing Markets: Prices Fall in the West While the East Booms" (article from The Wall Street Journal)"Binance Sued by CFTC Over Evading U.S. Rules" (article from The Wall Street Journal)"Binance Sees $2 Billion in Outflows as Troubles Compound" (article from The Wall Street Journal)"US pending home sales rise for third straight month; loan demand increases" (article from Reuters)"Credit Suisse whistleblowers say Swiss bank has been helping wealthy Americans dodge U.S. taxes for years" (article from CNBC)"Thanks to regulators, SVB will be the most costly bank failure in history" (article from The Hill)

As a series of U.S. lenders were besieged by customers yanking out their money this month, banking giants such as JPMorgan Chase & Co, Citigroup Inc. and Bank of America Corp. warned employees: Do not make it worse. JPMorgan, the nation's largest bank, told all employees they "should never give the appearance of exploiting a situation of stress or uncertainty," in a March 13 memo. "We do not make disparaging comments regarding competitors."In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss data showing that customers have recently pulled nearly $100 billion in deposits, while Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and more than a dozen other officials convened a special closed meeting of the Financial Stability Oversight Council.Chris and Saied look at news that Deutsche Bank’s stock plunged Friday as the market hones in on the German firm as the next major bank at risk in the wake of long-time rival Credit Suisse’s collapse and similar events stateside. Frankfurt-listed shares of Deutsche Bank dropped 7.5%, now down more than 25% since March 8, when confidence in the international banking system began to crumble.They also offer some thoughts on data from Trepp, an analytics provider for the Structured Finance, CRE, and Banking markets, indicating that this year, roughly $270 billion in commercial mortgages held by banks are set to expire. This means that big owners of property face the prospect that beleaguered banks, especially smaller ones, could get more aggressive with lending arrangements, giving landlords even less room to breathe as they try to refinance a mountain of loans coming due.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Paul Volcker’s monetary policy career and Ben Bernanke’s role in AIG bailout.Jerome Powell's role in the current banking crisis.The two different types of lender in the commercial real estate space.Why JP Morgan and Bank of America have been telling staff not to poach clients from stressed competitors.And so much more...Resources:"Volcker Slayed Inflation. Bernanke Saved the Banks. Can Powell Do Both?" (article from Bloomberg)"Exclusive: JPMorgan, Citi, BofA tell staff not to poach clients from stressed banks" (article from Reuters)"Nearly $100 billion in deposits pulled from banks; officials call system ‘sound and resilient’" (article from CNBC)Custodia Bank via Twitter"Veteran of FDIC Takeover Tells What It’s Like to Run a Failed Bank" (article from The Wall Street Journal)"What’s Going On at Deutsche Bank?" (article from The Wall Street Journal)"Commercial real estate is in trouble. A banking crisis will make it worse." (article from Yahoo! Finance)"Elon Musk says Jerome Powell is so bad at his job that GPT-4 would be a better Fed chair: ‘This foolish rate hike will worsen depositor flight’" (article from Yahoo! Finance)

Recession chatter has returned on Wall Street as markets deal with the blow of several bank failures and the potential economic aftermath. The likelihood of a U.S. recession is back on the rise for the first time since November 2022, according to the latest Bank of America fund manager survey released on Tuesday. About 42% of fund managers surveyed see a recession happening within the next 12 months, up from 24% in February. While fund managers aren't in universal agreement on a recession, they are almost in unison on the economy being stagnant over the next 12 months.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss data released by the Census Bureau, stating that housing starts, a measure of new home construction, rose by 9.8% in February from January, though that’s still down 18.4% from a year ago. Starts in January rose to a seasonally adjusted annual rate of 1.450 million, up from the revised January estimate of 1.321 million.Chris and Saied look at news that the Securities and Exchange Commission has unveiled fraud and unregistered securities charges against crypto founder and Grenadian diplomat Justin Sun, alongside separate violations against the celebrity backers of his Tronix and BitTorrent crypto assets, which included Jake Paul, Lindsay Lohan and Soulja Boy.They also offer some thoughts on a review by Bloomberg News indicating that, in terms of layoffs, 2023 had the the worst start to a year since 2009, with nearly 52,000 jobs lost in one week in January alone. Since Oct. 1, executives across sectors have sacked almost half a million employees around the world.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:Why small regional banks really help small to midsize businesses.The importance of understanding that the FOMC’s economic projections are not linear.The difference between the Federal Deposit Insurance Corporation (FDIC) and the Federal Deposit Insurance Agency.The importance of getting permits before you apply for a construction loan.And so much more...Resources:"Yellen: U.S. Could Intervene Again to Protect Banking System" (video from The Wall Street Journal)"Home Prices Fell in February for First Time in 11 Years" (article from The Wall Street Journal)"Global layoffs stretch far beyond big tech" (Bloomberg Business via Instagram)"‘Already past the point of no return’: JPMorgan says the U.S. is probably headed for a recession as economic ‘engines are about to turn off’" (article from Fortune)"Gen Z is racking up credit card debt faster than any other generation" (Businessweek via Instagram)"BofA: 'Recession fears are up in March'" (article from Yahoo! Finance)"Goldman boosts US recession odds after slashing GDP forecast" (article from Yahoo! Finance)"U.S. SEC threatens to sue Coinbase over some crypto products" (article from Reuters)"Fed Raises Rates but Nods to Greater Uncertainty After Banking Stress" (article from The Wall Street Journal)"Home sales spike 14.5% in February as the median price drops for the first time in over a decade" (article from CNBC)"US home building surged in February" (article from CNN)"Irvine company to build 4.5K apartments in Irvine" (article from TheRealDeal)"LA cuts revenue predictions from new transfer tax by 25%" (article from TheRealDeal)"SEC charges Tron founder Justin Sun, celebrities Lindsay Lohan, Jake Paul with crypto violations" (article from CNBC)"Jake Paul earned over $2 million by promoting pump and dump crypto schemes" (article from Cryptoslate)"11 things millennials ruined" (article from Mashable)

Banking giant UBS is in discussions to take over all or parts of Credit Suisse, with the boards of Switzerland's two biggest lenders set to meet separately over the weekend. The Swiss National Bank and regulator FINMA are organising the talks in an attempt to build confidence in the country's banking sector. On Friday evening, Swiss regulators informed their counterparts in the United States and United Kingdom that the merger of the two banks was their "Plan A" to salvage the confidence in Credit Suisse. Several other options are also under discussion between the two banks as both sides try to evaluate regulatory constraints in different jurisdictions.In this episode of The Higher Standard, Chris and Saied examine this news and determine the effect it will have on the economy as a whole.They discuss an 85-year long study by Harvard researchers indicating that, while particular roles can’t be reliably correlated with dissatisfaction and burnout, certain job characteristics can be. Jobs that require little human interaction and don’t offer opportunities to build meaningful relationships with co-workers tend to have the most miserable employees, the study found.Chris and Saied look at news that Bitcoin has climbed to a nine-month high as turmoil in the banking sector drives some investors to turn to digital assets. It rose as far as $28,567, its highest since mid-June, and was last up 0.9%, amid growing expectations that central banks would slow the pace of interest rate hikes.They also offer some thoughts on contingent convertible bonds, or CoCos, often described as high-yield investments with a hand grenade attached. The UBS takeover of Credit Suisse has pulled the pin on $17 billion of them.Join Chris and Saied for this fascinating and informative conversation.Enjoy!What You’ll Learn in this Show:What’s happened at the Federal Open Market Committee (FOMC) meeting on Tuesday.Why Switzerland is known for having low levels of financial risk and high levels of privacy.Why the axing of Credit Suisse’s $17 billion contingent convertible (CoCo) debt has big implications for the newly combined bank and the wider market.Bitcoin's climb to a nine-month high as turmoil in the banking sector sparks a rally.And so much more...Resources:Markets and Mayhem via Twitter"UBS in talks to acquire Credit Suisse" (article from The Financial Times)Ulrich Körner via Wikipedia"UBS buys Credit Suisse for $3.2 billion as regulators look to shore up the global banking system" (article from CNBC)"UBS Agrees to Buy Credit Suisse for More Than $3 Billion" (article from The Wall Street Journal)"Big Banks Best Positioned to Weather Crisis: Morningstar" (article from The Street)"Credit Suisse's $17 billion of risky bonds are now worthless" (Bloomberg via Instagram)"Why $17 billion in risky debt was wiped out in Credit Suisse rescue deal" (Bloomberg via Instagram)Zerohedge via Twitter"Bitcoin climbs to 9-month high as bank turmoil sparks rally" (article from Reuters)"85-year Harvard study found that people with this type of job tend to be the unhappiest" (article from CNBC)"Local Banks Could Leave Gaps That Are Hard to Fill" (article from The Wall Street Journal)