June 11, 2020· 41 min

Why You Can’t Blame The Fed For Ultra-Low Interest Rates And Soaring Asset Prices

Jon Turek

Orality

Model

66%

Oral-dominant (speeches, podcasts, storytelling)

Speaker Breakdown

HostJoe Weisenthal(2,134 words)

M:93%

HostTracy Alloway(1,057 words)

M:28%

GuestJon Turek(3,800 words)

M:28%

Oral Indicators

Agonistic54%

literally, completely, obviously

Engagement63%

you, our, your

Memory Aids100%

listen, now, so

Repetition100%

kind (96x), know (95x), like (87x)

Parallelism100%

And I'm Tracy Alloway...., So, Tracy, obviously, still in..., And I think, like, one of the ...

Sound Patterns20%

15 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases8%

i mean, the thing is, so to speak

Literate Indicators

Hedging12%

possibly, rather, maybe

Passive Voice3%

is when, was when, is reduced

Abstract Nouns18%

investment, recommendation, unemployment

Subordination8%

while, because, although

Sentence Length55%

Avg: 18.8 words/sentence

Word Complexity47%

investment, analyze, anticipate

Academic Markers0%

Impersonal Style37%

479 personal pronouns found

Descriptive Style100%

literally, completely, obviously

Description

One of the characteristics of the pre-crisis (and perhaps also the post-crisis) economy is the presence of very low interest rates, and financial asset prices that are expensive by historical standards. Of course, a lot of people are inclined to blame the Fed for this. But the real issue precedes the Fed, and in fact the Fed (and other central banks) are only responding to political decisions that depress consumption, investment and inflation. On this episode, we speak with Jon Turek, the author of the Cheap Convexity Blog, about how policies all around the world that suppress consumption and encourage exports are the real policy choices that lead to low rates and expensive financial assets. See omnystudio.com/listener for privacy information.

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