Wed, 13 March 2019
1149: Mortgages as Bonds & Peak Trump, The Undrainable Swamp & the Fantasy of MAGA with Blackstone co-founder David Stockman
Jason Hartman and Adam tackle a potential sign that we're entering more financial risk as mortgages that aren't backed by the government are being bundled together and sold as bonds in the marketplace. It's not being done on a grand scale YET, but it's a practice that's growing quickly and steadily. Remember, this is part of what caused the Great Recession, so it's something worth watching.
Then Jason talks with David Stockman, former budget director for President Reagan, former US Representative for the 95th Congress, former partner at The Blackstone Group and author of the new book Peak Trump: The Undrainable Swamp and the Fantasy of MAGA. The two discuss Reagan's failure to curtail spending like he'd originally wanted, the difficulty Trump is having actually "draining the swamp", the impact of increasing debt on inflation and whether it's sustainable.
[2:55] Non Fannie & Freddie backed loans are being packaged and sold as bonds once again
[8:49] Meet the Masters is going to feature new topics such as home inspections and a presentation by a client about self-management
David Stockman Interview:
[13:55] Reagan got very little in way of his proposed spending cuts, but got a much bigger tax reduction than proposed, then defense spending exploded
[17:36] Trump's problem was that he recognized the economy was failing but didn't have a program to address it
[22:41] Does our escalating deficit mean inflation is on the horizon?
[27:02] Is our private debt really that bad?
[30:47] How investors should position themselves for the next few years
[33:35] We've learned in the last decade that Central Banks can't cause inflation on a worldwide basis