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The Investor's Podcast (We Study Billionaires)  - The Investor’s Podcast Network

TIP157: Quantitative Tightening, Bitcoin, and Currencies w/ Grant Williams (Business Podcast)

The Investor's Podcast (We Study Billionaires) - The Investor’s Podcast Network

Stig Brodersen

Education, Investing, Business

4.63.6K Ratings

🗓️ 23 September 2017

⏱️ 63 minutes

🧾️ Download transcript

Summary

IN THIS EPISODE, YOU’LL LEARN: What is quantitative easing and how does it work? Why Central Banks are buying stocks. What the severe debt situation means for currencies. Why Howard Marks changed his opinion on Bitcoin. Ask the Investors: How do I value stocks when the interest rate is so low? BOOKS AND RESOURCES Join the exclusive TIP Mastermind Community to engage in meaningful stock investing discussions with Stig, Clay, and the other community members. Grant Williams’ podcast, Adventures in Finance. Preston and Stig’s episode on the bestselling book “The Age of CryptoCurrency”. Preston and Stig’s episode on Economist Richard Koo’s book, Balance Sheet Recession. Howard Marks’ latest memo on Bitcoin. Howard Marks’ critical memo on Bitcoin. NEW TO THE SHOW? Check out our We Study Billionaires Starter Packs. Browse through all our episodes (complete with transcripts) here. Try our tool for picking stock winners and managing our portfolios: TIP Finance Tool. Enjoy exclusive perks from our favorite Apps and Services. Stay up-to-date on financial markets and investing strategies through our daily newsletter, We Study Markets. Learn how to better start, manage, and grow your business with the best business podcasts.  SPONSORS Support our free podcast by supporting our sponsors: ⁠HardBlock⁠ ⁠Human Rights Foundation⁠ ⁠Plus500⁠ ⁠Netsuite⁠ ⁠Shopify⁠ ⁠Vanta⁠ Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Support our show by becoming a premium member! https://theinvestorspodcastnetwork.supportingcast.fm Learn more about your ad choices. 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Transcript

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0:00.0

You're listening to TIP.

0:02.5

So back in 2008, we experienced a massive financial crash in the global economy.

0:08.0

In an effort to prevent a total economic meltdown, the United States government approved the

0:12.8

bailout of numerous banks and key structural businesses to keep the economy afloat.

0:17.3

During this time, the US Federal Reserve implemented an idea called quantitative easing.

0:22.4

And quantitative easing became so popular that other central banks around the world also joined

0:27.6

in on this technique. And it became a sought after tool to fix a sinking stock market.

0:32.2

So fast forward to today, and we still have some organizations like the European Central Bank

0:37.5

that are using quantitative easing, even though they've seen a massive jump in their stock market.

0:42.4

In some economies, we've seen it go up 100, and others we've seen it go up 300% from where the

0:48.4

2008 stock market crash occurred. On the other hand, central banks like the US Federal Reserve

0:54.0

are actually talking about the idea of undoing some of the quantitative easing efforts today in

0:58.8

2017. So on today's show, we found one of the smartest macro thinkers we could find to talk to

1:05.4

you about quantitative easing. And that's Mr. Grant Williams. Grant works at Real Vision TV.

1:11.8

He goes around and he interviews some of the smartest macro thinkers on the planet that

1:17.0

manage billion dollar portfolios. And he does this pretty much on a daily basis. So whenever you

1:21.9

hear this interview, I think you're going to be really impressed with how smart Grant is. We've

1:25.6

had him on the show before and every time we bring him on, we get such great feedback from our

1:29.9

audience. So in this episode, you'll learn quantitative easing is and how it works. But perhaps

1:35.6

more importantly, what will happen to the economy if the Fed decides to unwind the $4 trillion balance

1:41.8

sheet that accumulated over the past decade. So if you're ready, let's go ahead and do this.

1:47.3

You are listening to the Investors podcast where we study the financial markets and read the books

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