The Death of Liquidity
In this episode of The Part-Time Show podcast featuring Dr Kapil Amarasinghe, he explores the joint issues of wealth accumulation and the resultant impact of a reduction in liquidity.
Starting from the GFC of 2007-08, Dr Amarasinghe delves into the thinking of the economists who devised Quantatative Easing (QE) and how the 'mis-direction' of 'stimulus' funds into bonds and shares largely put wealth in the hands of the few, over-valuing assets and devaluing currencies.
"...if you want to understand the 2007-08 financial crisis...just watch 'The Big Short', that explains it pretty well...but then read up on it..."
Dr Amarasinghe offers an alternative take on the conditions for stimulus funding by means of an illuminating analogy and a thought provoking mind experiment! The writing on the wall for cryptocurrencies that rely on active trading but suffer from low liquidity due to big LT hoarders is writ large for all to see!
This podcast was first released on March 10th 2020.
Believe me, this is 18 minutes well spent!
Dr Kap, as he universally known, is a leading Speciality Doctor in Emergency Medicine and is the UK Community Ambassador to the Particl Project/Foundation. His interests include Emergency Medicine, Business Management, Arts, Geopolitics, Emerging Currency Markets and Distributed Ledger Technologies. He is also the MD of artradio, a creative social network that enables artists worldwide to share their work, see more at www.artradio.tv
Dr Kap is contactable through Twitter, LinkedIn, at particl.io or via email@example.com
Enjoy the podcast, more next week!