🤯📱Turns Out: Social Media is Bad For You
Hey all, back from a 1 week hiatus of Hump Days. Last weekend got away from me and I’ve been trying to put out more long-form YouTube content.
This past week was pretty crazy. With Facebook shutting down for 6+ hours and congress arguing over the debt-ceiling, it seemed quite tumultuous. Luckily, congress agreed to extend the debt-ceiling agreement to early December, which averts a ‘crisis scenario’.
If you don’t know what the debt ceiling is, basically it’s an arbitrary number that the government sets to be the “maximum” amount of money that the government can issue in debt.
The government runs at a deficit (as in, they don’t make more than they spend) and so the debt accumulates every year and we reach the debt ceiling cap every so often.
Here’s a quote from a CNBC blog:
“In 2011, political squabbling in Congress kept debt ceiling legislation from getting passed until just two days before the August 2 deadline. That ordeal also included a credit downgrade from Standard & Poor’s. Investors responded to the uncertainty by pushing the S&P 500 down more than 18% between July and October of that year.”
Essentially, if we see a default on debt, or even the mere possibility of a default on debt, the markets could react quite negatively.
The funny thing is, since the government runs at a deficit, we’re most likely going to run into this problem, and the only solution I see is to increase the debt ceiling temporarily.
— Humphrey
In the Markets
Weekly News Roundup
Biden Administration Seeks to Regulate Stablecoin Issuers as Banks (WSJ)
According to people familiar with the matter, the Biden administration is considering ways to impose bank-like regulations on the crypto companies that issue stablecoins, including having the firms register as banks.
HY: This would give some crypto coins legitimacy, would be bullish for the entire crypto market.
Semiconductor Chip Shortage Could Extend Through 2022 (CNBC)
With a global chip shortage affecting almost all industries from cars to computers to toothbrushes even, the CEO of the semiconductor company: Marvell Technology says that the shortage is likely to extend into 2022 and potentially beyond that.
HY: Looks like new cars and used car prices are going to be wonky for awhile longer, since semiconductor chips are the main reason the used car market is topsy-turvy.
Facebook Shares Drop Nearly 5% After Site Outage and Whistleblower Interview (CNBC)
Following its worst service outage in 13 years and a day after “60 Minutes” aired an interview with a whistleblower who accused Facebook of betraying democracy, Facebook shares fell nearly 5% and the impact was felt among all social media stocks.
HY: FB will be fine. Everyone is still super addicted to FB/IG/WhatsApp. FB also has survived the most drama out of any tech company in the past 10-15 years, I don’t think they can be stopped at this point. They could have a slow demise, but a catastrophic event where they go from 100 → 0 is unlikely.
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