What we’re reading (12/4)
“Blockchains, What Are They Good For?” (Paul Krugman, New York Times). “The question I’ve never heard or seen satisfactorily answered, however, is, ‘What’s the point?’ Why go to the trouble and expense of maintaining a ledger in many places, and basically carrying that ledger around every time a transaction takes place? The original rationale for Bitcoin was that it would do away with the need for trust — you wouldn’t have to worry about banks making off with your money, or governments inflating away its value. In reality, however, banks rarely steal their customers’ assets, while crypto institutions more easily succumb to the temptation, and extreme inflation that destroys money’s value generally happens only amid political chaos.”
“Crypto Stocks Teeter Near Abyss As Fink’s Warning Adds To Angst” (Bloomberg). “Analysts and investors are struggling to call a bottom in crypto stocks in the wake of a brutal month that ended with the head of BlackRock Inc. saying most digital-asset firms won’t survive.”
“Where Did Young Male Workers Go?” (Wall Street Journal). “It’s not merely a result of more baby boomers retiring. Labor force participation among males ages 25 to 54 has slid to 88.4% from 89.3% before the pandemic. Don’t blame long Covid. The decline is most pronounced among young men. Labor participation among males ages 20 to 24 has fallen 1.7 percentage-points since January 2020 versus 0.5 for those ages 45 to 54.”
“Stock Market Gamblers Let It Ride Again In Brutal Year” (Bloomberg). “Active stock managers are adding to positions. Option markets show a trend toward hedging, a sign professional traders are dipping back into equities. Beyond institutional circles, demand for meme stocks springs eternal, with chat-room favorites like AMC Entertainment posting big days.”
“Why The Stock Market Is Channeling Goldilocks” (CNN Business). “The global economy is weakening and consumers are feeling financially stressed. Gas and heat prices are up significantly from last year and Federal Reserve Chair Jerome Powell indicated on Wednesday that painfully elevated interest rates will hang around for some time. It’s rough out there, but there is a silver lining: Persistently high Inflation is showing signs of slowing. Finally.”
