Welcome back to The Breakdown with me, NLW.

It's a daily podcast on macro, Bitcoin, and the big picture power shifts remaking our world.

The breakdown is sponsored by crypto.com, nexo.io, and elliptic, and produced and distributed by CoinDes.

What's going on, guys? It is Sunday, October 18th, and that means it's time for Longreed Sunday.

And I'm really excited about this one. This is a selection from John Street Capital, and you may

remember I referenced something that John Street

Capital wrote a couple months ago when I did my primer on SPACs. They were one of the voices

talking about why a Coinbase SPAC might make sense. Today we're going to read a piece

called Capital Allocation and Risk Asset Remifications in a Zero Interest Rate World,

which is a mouthful, but that zero interest rate world and what happens because of it

is really the topic. So without any further ado, let's dive in.

QE Infinity turned your savings account into your checking account, the bond market into your

savings account, the equity market into the bond market, the bond market into your savings account, the

equity market, the venture market into the equity market, while given rise to the crypto market

as the new venture market. On a recent podcast, we spoke about the public and private markets,

the current macro environment and implications for risk asset allocation. Some asked for the

SparkNotes version of what was discussed and why

it's relevant, which is attempted below. Macro backdrop. In a world post-financial crisis,

we have seen a structural move lower in global rates with an estimated $17 trillion of negative

yielding debt. The COVID-19 pandemic has only accelerated this trend due to the unprecedented global

fiscal and monetary stimulus with central bank's balance sheets expanding by 5.5 trillion year-to-date

from 16 trillion to 21.5 trillion, that's 34% increase, representing the biggest move since the

...