Will Emerson: Jesus, Seth. Listen, if you really wanna do this with your life you have to believe you're necessary and you are. People wanna live like this in their cars and big f-in' houses they can't even pay for, then you're necessary. The only reason that they all get to continue living like kings is cause we got our fingers on the scales in their favor. I take my hand off and then the whole world gets really f-in' fair really f-in' quickly and nobody actually wants that. They say they do but they don't. They want what we have to give them but they also wanna, you know, play innocent and pretend they have no idea where it came from. Well, thats more hypocrisy than I'm willing to swallow, so f em. F normal people. You know, the funny thing is, tomorrow if all of this goes t-s up they're gonna crucify us for being too reckless but if we're wrong, and everything gets back on track? Well then, the same people are gonna laugh till they p-ss their pants cause we're gonna all look like the biggest p-ssies God ever let through the door.
Which illustrates the real point: "what we have to give them" is debt. Can we grow debt from this point forward?
In the short term: I don't see what the problem is with growing debt at this point.
Oh and, btw, the FED will never repay its balance sheet. It's just not going to happen, ever, under any circumstances.
Which gets me to my, seemingly rather unique, position: this is not a financial crisis (at least not yet). There's problems yes, but there's also a lot of money to solve them. Which means they will get solved, quickly. And just because we're recovering from the mother of all supply crunches and the numbers are going down to readjust, we see a lot of models crying "recession". There is no real recession. There's a recession in money paid for things. There's no recession in physical goods being distributed, quite the opposite. People aren't suddenly vastly more indebted (like in 2008) than they can be.
There was such a big problem with supply and demand that when we all collectively decided to take away to artificial roadblocks, which turned out to be the point some idiot Russian decides to use to ... and supply and demand had such a big and such a wide ranging adjustment to make that it took the the law of supply and demand ~12-18 months to adjust prices, of which some 6-8 months are still in the future. Now supplier prices are adjusting down, not for housing, not for finance, but for everything else, and everybody cries recession. Wrong. Supply just shot through the roof and demand is actually rising. The same refrain is seen everywhere. Prices for X ROCKETED up, and are coming back down rather quickly. Take your pick cars, flights, food, chips, ... There are confusing factors, such as with housing: people have been using SUBSIDISED money for housing and this is being wound down, people are getting kicked out of the housing they're in. So ... lots of complaints. But this is actually an indication, of course, of too much demand, not too little. Too much demand, too much people yelling here's money, now give me ... This shouldn't lead to a recession!
Of course my problem is ... I'm "fighting the FED". The FED disagrees with me. Of course. I'm fighting JUST the Fed at this point. I'm still on the side of the ECB, BOJ and PBOC ...
Seth Bregman: Do you think we're gonna be wrong?
Will Emerson: [long pause] No, they're all f-d.
(edited for language)