The End of the Everything Boom (Plus: The Federal Reserve's Risky Move)

Plain English with Derek Thompson

The Ringer

News, News Commentary

4.7 • 2.1K Ratings

🗓️ 15 June 2022

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

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Summary

This is a huge week for economic and finance news. On Wednesday afternoon, the Federal Reserve raised interest rates by 0.75 percentage points, its biggest move since 1994. Derek breaks down what this means for your wallet and the future of the economy. Then he brings on The New York Times' Kevin Roose for a conversation about the end of the "everything boom." For the last decade-plus, just about every asset class has gone to the moon: stocks, housing, crypto. That era is over. But where did the everything boom come from? How did it change our lives, from cheap Uber rides to risky crypto projects? And what does it mean that this era is coming to a close? Derek and Kevin also talk about their idea of a "millennial consumer subsidy"—the notion that for many years venture capitalists subsidized ride-share and delivery companies in a way that was unsustainable and not all that great for the people behind the wheel. Host: Derek Thompson Guest: Kevin Roose Producer: Devon Manze Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0	What's up guys Rachel Lindsay here and I am teaming up with your favorite
0:04.0	Ringer podcasters to deliver the bravo drama and news that you've been craving on
0:08.9	morally corrupt. It's the show about all things bravo from the housewives to
0:14.3	summer house and everything in between. We'll be mentioning it all every week.
0:20.0	Check it out on Spotify and the Ringer.com.
0:22.8	Today's episode is about the end of the everything boom and the wide ripple effects
0:33.4	of the Federal Reserve's latest interest rate announcement.
0:39.1	For the last decade plus basically every asset class you can name has gone to the moon.
0:44.9	Stocks up housing up crypto up that was the everything boom and it's over.
0:50.8	It was over when the stock market crashed into bear territory this week.
0:55.6	It was over when the housing market you turned earlier this month and home buying
1:00.4	screeched to a halt and it is definitely definitely over now that the Fed today on Wednesday
1:06.0	afternoon announced its raising interest rates by 75 basis points which is nerd speak for 0.75
1:13.6	percentage points. This is the highest interest rate increase in 28 years.
1:19.6	Today's guest is Kevin Rus. Kevin and I in this episode talk about Fed policy,
1:25.3	interest rates, crypto, the everything boom. But before we get to that interview I want to do
1:30.8	a few words on this historic rate announcement specifically. What the Federal Reserve is doing
1:37.1	and what the Federal Reserve is telling us it will do in the future and we're going to do this
1:41.5	in a typical plain English-y evidence versus interpretation breakdown. So first the evidence.
1:47.0	No editorializing this is just what happened. The Fed raised its target interest rate by 0.75
1:52.7	percentage points and sharply raised its projection of rate increases over the next year, right?
1:58.0	Basically interest rates are going up faster than we thought they would and they will continue
	...

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