Manage episode 371187582 series 3378373
“The reserve dominance the U.S. had is slowly slipping,” says David Daglio, CEO of asset-management firm BC-GUMPS, when discussing the de-dollarization trend. He also criticizes the Federal Reserve for not independently tackling today's out-of-control inflation and instead just casually monitoring it like a “weatherman.” He predicts that in six months, the Fed is going to be “cutting rates” to bring down inflation. “The bond market has already spoken. We are going to see the sharpest cut in rates of all time,” he adds.
Daglio says that the biggest problem for banks throughout this banking crisis is the fractional reserve model, which is a “systematic problem” that results in banks lending out more than they actually have because not all people need their money at one time. He concludes by sharing his investment philosophy and how folks should navigate through this uncertain market moving forward.
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