He talks about asset inflation as well and ill play. The longer version of that clip for you at the end of the video, but i wanted to talk about what biden just said. I said in previous videos that he was going to talk about inflation here today. I want to cover that and then also talk about what to expect out of tomorrows cpi reading now, if you guys dont mind hitting the like button and subscribe button, i appreciate that theres a link underneath the video to block fight theyre, giving up to a 250 Bonus in bitcoin, when you sign up, which is a lot of bitcoin now with the price going down, also uh, you do have to make a deposit to just know that, as you deposit more you get more of a bonus, theres also a link down there to Unstoppable domains to get a readable wallet address makes it a lot easier to receive crypto, so you can get something like sam.wallet definitely check out both of those underneath. The video now like, i said ill play the longer version of this clip. He does talk about how basically one of their goals was to lower asset prices and thats, because a lot of people are feeling really wealthy. So that is just kind of a positive thing that they were able to do, because when people feel really wealthy, they spend more on stuff and then inflation rises, so to get to decrease, makes sense to drop some of the markets.

Now he didnt phrase it just like that, but its pretty much what hes saying hes, also saying that people that didnt have real estate in stocks still had a really healthy balance sheet, so ill play that again longer version towards the end of the video. But lets talk about what president biden just said about inflation. Now i would not suggest going and watching this video, the first half of it is nothing the second half theyve been. They were trying to figure out how to get the volume at the right amount. Uh. The right volume it was really quiet for a while, then super loud, so its just really annoying to listen to. I do have a low summary here, though, and it its not exactly what i thought. So i had said in previous videos that he was supposed to talk about several different things from releasing uh a million barrels of oil a day for the next six months to try to decrease the price of gas. So this is coming from cnn im, not getting political here, but basically they even didnt like what he said. He basically just talked about what republicans were trying to do, what he was trying to do, how they needed tax uh, wealthier families and tax companies. All that kind of stuff, so it wasnt really like he, he said anything really important kind of just was a political speech. It seemed like that he was just trying to push people to you know to his side and im not trying to get political.

I dont want you guys to get political in the comments. It just seemed like nothing to me seemed kind of worthless, even though he was supposed to make some good points. I dont think he really did too much. We do have cpi coming out tomorrow. Everyones going to be watching it, we did see the markets recover a little bit earlier. Today we had nasdaq go up to 2.7 up on the day, then go all the way back down to the negative 0.4 or 0.5 range and then were back in the positive. As of the time of this recording a lot of people trying to move positions around ahead of tomorrows cpi reading now, the consensus is that we have a drop in cpi down to 8.1 percent from 8.5. If this happens, i think the market will take it as a good sign now weve seen fake rallies before, but i think this would be a good sign because first of all, assets have fallen down. What ten percent over three trading days the nasdaqs fallen down. Ten percent, we have seen a ton of fear in the market. Weve seen inflation start to come down now. The feds already talked about how theyre not going to raise prices or theyre not going to raise rates too much. If we see a little bit of a? U turn and now what im about to show you is theyve already seen some inflation numbers come in already ahead of the cpi data and theyve already come down a little bit, so thats, probably a good sign for tomorrow.

Now, if we get this 8.1 percent, i think its going to be good for the markets. Now we might not actually rally for a little bit longer. Maybe some people just think this is a blip and theyre a bigger term issues going on right now. I think it will be a good sign and if we get 8.1 ill be happy. Obviously, if we get higher than that, we might sell off a little bit more. But i think a lot of fears already priced in the crypto markets down a lot. The stock markets down a lot housing seems to be softening a bit. We havent seen a big drop in that, like we have seen at their asset prices, but that is where were sitting at now, so 8.1 percent pay attention to that biden. Didnt really talk about anything, and then this is the fed president and what he said on inflation just yesterday, so ill play this for you, you just said you dont focus so much on the stock market unto itself, but you do focus on the psychological impact of Of the price of assets and effectively, what i imagine youre saying is the wealth effect or the lack of a wealth effect given where youve seen assets move over the last month. How do you think that that psychology has changed has do you think that, and also given some of the other numbers you were just talking about in terms of how much household wealth families have? How much more does that have to come down to change the psychology? Well, its a good question.

You know when i think about this, this um regime that we might be in a higher pressure equilibrium. The wealth effect is part of that. So stock prices were very high relative to pre pandemic home prices, very high relative to pre pandemic and then even the lower income, households that dont own stocks or dont own a home, many of them have much stronger healthy balance sheets than they had before the pandemic. My theory is that all of that is leading people to feel more confident and to spend more and maybe thats whats pushing us into this higher consumption, higher spending higher inflation regime. So yes, the stock market has come down. Home prices are still very high. The latest data is that still been quite robust, even though mortgage rates have climbed quite a bit just over the course of this year and again, household balance sheets continue to be very strong, and so you know we just need to keep paying attention to the data. Some of the er, the most recent inflation data on some measures, is a little softer than we had thought might come in. So maybe theres some evidence that things are starting to soften just a hair, but we just need to keep paying attention to the data and seeing where it comes out before we can draw any conclusions.