What we’re reading (9/3)
“Entering The Superbubble’s Final Act” (GMO). “The U.S. stock market remains very expensive and an increase in inflation like the one this year has always hurt multiples, although more slowly than normal this time. But now the fundamentals have also started to deteriorate enormously and surprisingly: between COVID in China, war in Europe, food and energy crises, record fiscal tightening, and more, the outlook is far grimmer than could have been foreseen in January. Longer term, a broad and permanent food and resource shortage is threatening, all made worse by accelerating climate damage.”
“Enough, Bosses Say: This Fall, It Really Is Time To Get Back To The Office” (Wall Street Journal). “After months of encouraging white-collar employees to return, or attempting to coax them back with free pizza, warm cookies and catered lunches, many executives now say they feel emboldened to take a tougher stance. No longer can workers merely come to the office if they so choose; this fall, executives say, attendance is expected and the office resisters will be put on notice.”
“Interview: Vitalik Buterin, Creator Of Ethereum” (Noahpinion). Per Vitalik: “I was surprised that the crash did not happen earlier. Normally crypto bubbles last around 6-9 months after surpassing the previous top, after which the rapid drop comes pretty quickly. This time, the bull market lasted nearly one and a half years. People seemed to adjust into the mentality that the higher prices are a new normal. The whole time, I knew that eventually the bull market will end and we’re going to get the drop, but I just did not know when. Today, it feels like people are reading too much into what is ultimately cyclical dynamics that crypto has always had and probably will continue to have for a long time. When the prices are rising, lots of people say that it's the new paradigm and the future, and when prices are falling people say that it's doomed and fundamentally flawed. The reality is always a more complicated picture somewhere between the two extremes.”
“1 In 5 Home Sellers Are Now Dropping Their Asking Price As The Housing Market Cools” (CNBC). “Homes are simply not selling at the breakneck pace they were six months ago, when strong demand butted up against tight supply, bidding wars were the norm, and a seller could often get a signed contract in under a weekend. Homes in August sat on the market an average five days longer than they did a year ago — the first annual increase in time on the market in more than two years.”
“The Optimal Amount Of Fraud Is Non-Zero” (Bits About Money). “This fraud [payments fraud] is possible by design. The very best minds in government, the financial industry, the payments industry, and business have gotten together and decided that they want this fraud to be possible. That probably strikes you as an extraordinary claim, and yet it is true.”
