I think its probably useful to go back and you have to really start at the end of the great financial crisis. Markets are in complete turmoil across the board. At the time of writing. The s p 500 is down 18 year. To date, the dow jones is down 14 year. To date, bitcoin is trading at 21 200 down 55 year. To date, the may consumer price index shot up to 8.3 percent the highest since 1981, and to top it off, many companies across all sectors are beginning to announce layoffs in his all in podcast, chamath, pali hapatia addressed why he believes the recovery wont take just six Months or even a year, he believes we are in for a long economic recovery due to all of the fed printing and monetary theory that didnt pan out. As expected before we listen to shamath. If youre not subscribed hit the subscribe button, as we put out daily content to keep you updated on the market and the reason is, there was a bunch of people coming out of the gfc who confused what the us government and some european governments were doing at The time there was the risk of a huge financial contagion, and so the u.s stepped in and the federal reserve started to use their balance sheet to buy toxic assets right and the ecb did that, and i think japan did that as well. Anyways, a bunch of banks did it, i mean a bunch of governments, did it and then there was this body of pseudoscientist certificate.

Economists who coined this thing called modern monetary theory which basically said hey. You can keep printing money and introducing it into the economy, to smooth things out and to actually drive long term growth, and it turns out that a bunch of government officials fell for it and if you fast forward to 2022 so 14 years later, you know governments Around the world had printed something to the tune of about 30 35 odd trillion dollars of money into the economy. That should have never been there. So the thing to remember is like we have not necessarily just been obfuscating. True supply demand in the last six or eight months when weve been talking about a recession or inflation weve been actually doing it since 2008, its just that its been building up in the system. So one of the things that we have to realize is that all of that money somehow needs to get destroyed in some way shape or form. If the true economic equilibrium is meant to be found, what is true supply? What is true demand in the absence of government sloshing money around trying to prop up things that should not be propped up or buying votes or all the griffs that these folks have engaged in. In the last you know, decade and a half have to get undone. So thats the backdrop, so if you think about taking 30 trillion dollars out of the global economy, you know youre talking about almost you know, i think its 85 trillion is the world gdp.

So, like you know its its its almost half of an entire years worth of global gdp, its going to take three years, probably of the slow, meticulous you know, running off of money. You know not reintroducing new money, so it seems like were at the beginning of the beginning of something thats going to be long and drawn out now, thats separate from and thats separate from whether were in a recession or not thats. Just the bear market that were in right, and so you have to look at asset prices today as a microcosm of a much larger trend that has to be about fake money, pushing asset prices up and now taking all that fake money out and finding out what The real price of something is – and i just dont think that takes six months so for all the people that were you know, fingers crossed hoping that this would be the end of it. Fed raises 75 were done with this theyre gon na raise 75 more. I just think thats not how its probably going to be its going to take. You know 24, 36 months. That may mean the bottom doesnt happen for another 18 months. So i think its a were in for a lot of choppy um market action, along with the traditional markets. Champ believes that the recovery in the crypto markets will also be a long road, but for different reasons, headlines have been coming out as of late with bad players in the crypto markets.

Beyond just terra, luna shemath expressed that the shakedown of these fraudulent activities will take some time, but when they do thats, when we will see a recovery in the market, as more people will begin to recover confidence in crypto, wait till these token sale things get litigated. I mean the amount of grift by so many of these venture firms in running these sketchy deals where they would put in some amount of money. This is my understanding of the scam because it was explained to me you put in a little bit of equity at some crazy price, and then you get these tokens and apparently theres no, like you can just sell these tokens day one, and so what happens is Like you, you price the equity but its meaningless, because really what youre getting is the right to get some amount of these tokens? The price is crazy. You sell it and then you just kind of walk away, and apparently you know you do these deals where you just rinse and repeat this thing: um well, wait! Wait till that gets exposed well, theres an article theres, an article, and i think it was in bloomberg. Um about folks trying to figure out how to get um Music, a lawsuit filed against binance and the problem was that they didnt even know what entity to sue um its, not clear who owns what and you know what owns the other and who the ultimate look Through ownership structure is and um, and it doesnt mean that binance is guilty of anything, but the article was just you know showing how there was a u.

s investor who lost 1.2 million dollars who wanted to file a lawsuit, and they have every right to do that. Um couldnt even find the corporate entity to to actually file this lawsuit against. So if thats whats happening in a trillion dollar market, theres um, i mean its gon na – be a lot of people, its free, its a lot of oversight, thats thats, that if its a security, it has to be governed by the sec, if its a future or Commodity, its the cftc and the problem is, we need congress to pass some legislative framework that puts the puck in one side of the of the arena rink or the other yeah. Otherwise, all this gray is going to exist for a long time and people. You know if, if governments really hate it, when retail investors lose money well watch out, i mean its the worst kept secret in crypto. How much insider trading is going on amongst the organizations that run the exchanges and their side pockets that they use to to manage liquidity? I mean this is the its the biggest thing thats been happening in crypto, its, not a legal. This is my understanding, though, its not illegal to front run, crypto trade. So most of these organizations that that run, an exchange right, compete for order flow and theyre able to just look at that order flow. And then they front run the trade and theyre on the other side of that so theyre always making money, and so they were making tens of billions of dollars all these exchanges were, if you want to watch the full interview check out the link in the description.