A Non-Zero Interest Rate World
The Fed, billionaires, and empathy
some thoughts on markets and empathy and pricing mechanisms
Ah, what a week.
SBF arrested. CPI came in soft. Fed hiked by 50 bps. Twitter is melting.
There are two threads that I think tie together well in the broader discussion around the Fed and what’s happening on a microscale on Twitter dot com.1
Inflation doesn’t impact stocks - how the Fed reacts to inflation impacts stocks
Tech libertarianism relies on free market ideology - but a handful of billionaires end up being the entire free market
What’s interesting about these two things - the market really listening to the Fed (usually) and sometimes to the economic data (bad news is good news sort of thing), and the tech world bemoaning journalism while elevating themselves as the executor of free market - is that they both have a a weird twist of irony.
Free Markets
There is extensive literature on what “free markets” actually mean, with no real conclusive answer. Many have pointed out that there is really no such thing as free markets; tha…
