Daily Briefing – Aug 31, 2020 – This Bull Market Is Built On A Very Shaky Foundation: Ed Harrison

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 31 August 2020

⏱️ 35 minutes

🔗️ Recording | iTunes | RSS

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Summary

How is it that the real economy can be so weak while the asset markets continue to fly? Real Vision managing editor Ed Harrison explores this and more with senior editor Ash Bennington. Ed and Ash discuss the ever-widening chasm between Wall Street and Main Street and use Hyman Minsky’s “two-price model” as a framework to understand this dichotomy, and they analyze how asset markets have responded differently to interest rate cuts than the markets for goods and services. In that context, they explain how the sinking labor force participation rate reveals a hidden unemployment which will keep inflation subdued. In the intro, Ash and Jack Farley discuss Jack’s recent interview with Jason Buck on the Real Vision blog, and they also interpret the re-opening woes of airlines and colleges. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	It's Monday,
0:02.0	Monday,
0:03.0	on the day.
0:04.0	It's
0:05.0	And, I'm
0:06.0	...
0:10.0	It's Monday, August 31st, 2020, just after market close in New York.
0:17.0	This is the Real Vision Daily Briefing.
0:20.0	I'm Ash Bennington in New York.
0:21.5	Joined shortly by Jack Farley with an unscripted introduction.
0:25.9	Welcome, Jack, this is your first time
0:27.6	unscripted on RVedD.
0:29.8	Yeah, it's good to be here.
0:31.8	So Jack, what are you looking at today?
0:33.6	Oh, well, I was reading an interesting article in the FT
0:36.9	today that did an analysis of air traffic volumes
0:42.4	and how they've recovered throughout the crisis.
0:44.8	You look at a country like China, they have higher volumes now, meaning they're sending more
0:48.8	flights than they were in the beginning of January, whereas a country like Sweden or a country of the US are barely above 50%.
0:56.6	So that's the absolute picture.
0:58.8	But what I noticed, and if you see on the chart, even though domestic, the rebound in domestic flights has been a little
1:05.9	bit present, international flights have really lagged behind, and that for me is raising questions about de-globilization and such that.
	...

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