Ben Hunt says, “Cut the BS! The Banks Are Solvent!"
Inside the episode
There are bank runs and also rumors of more bank runs on the horizon. One side says, “the banks are insolvent, get to the lifeboats.” Another side says, “the banks are going to be fine…we’re sick and tired of doomers pulling the fire alarm.” Who’s right?
In this episode, we’re speaking with Ben Hunt who lays out the counterpoint details on why banks are going to be fine. He believes Balaji and Arthur are dangerously wrong. Tune in to hear why!
6:55 Ben’s Crypto Credentials
10:36 Critiques of the Fed
16:55 Ben’s Understanding of Balaji’s Thesis
24:33 What Ben Believes is Untrue
33:42 Treasuries Are the Safest Assets?
43:34 Ben’s Objection
50:52 Fiat is Better?
57:45 Step Back for Society?
1:02:26 Checks on Power
1:07:39 Rules-Based Monetary Policy
1:12:30 How to Fix the Fed
1:15:35 Closing & Disclaimers