The home equity of generation X is the venture capital fund of the next cycle. It's a common story, a generation Xer just closed on a home or has watched his equity explode over the last 20 years & has turned around to invest some equity in a startup. Compared to the upside potential, the interest rate is nothing. The lion kingdom's next day job may be funded by the home equity of a classmate.
Lion parents lived in a different world where spending home equity was phrased in terms of "using your home a collateral". Borrowing any amount against their home equity was a last resort & certain doom. They told horror stories of families using home equity to buy a piano or pay for college. The prospect of losing a house was the ultimate fear, but no-one ever really lost their house.
Someone living 40 years ago would say the modern trend of investing home equity in startups is really the top 1% using the homes of the bottom 99% as collateral. Wealth distribution has changed to where only the top 1% own houses, so it's really the top 1% using the homes of the top 1% as collateral.
Rich gootubers go as far as encouraging everyone to be their own bank & borrow against their home equity. The old fear may have been driven by the interest rate spike of 1980. It was really the only interest rate spike & since then, the money system has shifted away from fractional reserve banking to fiat money.
https://realmoney.thestreet.com/investing/doug-kass-my-15-surprises-for-2022-15868922?puc=yahoo&cm_ven=YAHOO
Manely humor, but some terrifying prospects.
"Powell Turns Hawkish - But Monetary Policy Fails to Dent Rising Inflation"
Lions still suspect rising inflation will be fudged out of the numbers.
"ESG investing, the complete reopening of the global economy and rising geopolitical tensions sends oil to over $110 a barrel."
Lions could only dream. Lions have always seen environmental sustainable investing as being bearish for oil because it would reduce demand, but maybe it also causes declines in production of oil.
"Yellen, recognizing that inflation is materially widening the wealth and income gap (by acting as a regressive tax) encourages Powell to do "whatever it takes" to stop inflation."
The democratic party will never recognize inflation as the cause of the income gap.
"After an Early Year Rally to New Highs, The Stock Market Rolls Over"
The only bear market which happens is the one no-one predicts, but the lion kingdom continually expects stonk gains to slow down. The government would have to stop or even reduce its printed money to cause a material decline, which it can't do.
"Elon Musk over celebrates being named Time's "Person of the Year" and winds up hospitalized after a drug overdose."
That would be a truly terrible event for all animals. Fortunately, the award was a few weeks ago & he hasn't overdosed yet. Most drug overdoses are caused by career declines.
"Tesla's shipments and market share are adversely impacted by a host of competitive EV offerings from domestic and non U.S. manufacturers."
Tesla isn't run like most large companies are, so lions aren't sure of that. They have a lot of investments in a lot of areas besides EV's & a willingness to pivot.
"Berkshire's common advances 25% and is one of the five best performing companies in the S&P 500."
Lions could only dream.
"One Fatal Space Accident Serves to Halt Space Tourism in Its Track for a While"
Not going to happen, but lions are impressed that spaceflight is manestream news.
"President Biden becomes sufficiently incapacitated such that President Harris becomes the first female President of the United States."
Not going to happen, but lions suspect Biden limping along & no-one else stepping up to be the world police will cause more instability.
Time again to remember JPL in 1946. It occurred to the lion kingdom for the 1st time that most of the houses in 1946 were completely torn down. Only a few still stand
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