Money For the Rest of Us
Money For the Rest of Us
J. David Stein
A personal finance and investing podcast on money, how it works, how to invest it and how to live without worrying about it. J. David Stein is a former Chief Investment Strategist and money manager. For close to two decades, he has been teaching individuals and institutions how to invest and handle their finances in ways that are simple to understand. More info at
How to Make Money With Dai, BlockFi and the Evolving DeFi Ecosystem
What is decentralized finance and how it is seeking to solve the shortcomings of centralized finance. How BlockFi and MakerDAO, early entrants in the DeFi space work. How to earn up to a 9% yield with cryptocurrency lending. Topics covered include:How centralized finance differs from decentralized finance (DeFi)What are the shortcomings of centralized finance and why decentralized finance is more inclusiveWhat are the key elements of DeFiHow Ethereum smart contracts workHow MakerDao and Dai work and replicate many aspects of the modern financial systemHow BlockFi operates using overcollateralized and undercollateralized loansWhat are the risks of cryptocurrency lending using BlockFi and Dai Thanks to LinkedIn and Truebill for sponsoring the episode. Show Notes Crypto Lending Interest Rates for April 2021—DeFi Rate DeFi and the Future of Finance by Campbell R. Harvey, Ashwin Ramachandran, and Joey Santoro Millions Lost: The Top 19 DeFi Cryptocurrency Hacks of 2020 by Anton Tarasov—Crypto Briefing Bitcoin Lending & Borrowing w/ BlockFi’s Zac Prince & Mark Yusko—Bitcoin Fundamentals by the Investor's Podcast Network BlockFi lands a $350M Series D at a $3B valuation for its fast-growing crypto-lending platform by Mary Ann Azevedo—Tech Crunch BlockFi Hacked Following SIM Swap Attack, But Says No Funds Lost by Graham Cluley—Tripwire Maker Protocol Full Guide: How to Make Money with DAI by Evan Ezquer—Asia Crypto Today DeFi Leader MakerDAO Weighs Emergency Shutdown Following ETH Price Drop by Brady Dale and William Foxley—CoinDesk Celsius Network Interest Rates, Explained—Celsius What Crypto Lender Celsius Isn’t Telling Its Depositors by Nate DiCamillo—CoinDesk
Apr 21
22 min
Inflation, the National Debt and the U.S. Dollar - What Could Go Wrong?
With a ballooning U.S. federal budget deficit, a growing national debt, and double digit increases in the money supply, is it time to bet against the dollar? Topics covered include:What is driving the double digit increases in U.S. home pricesWhy hasn't inflation spiked in line with rising home pricesWhat is the velocity of money and why is it fallingWhat are three schools of thought regarding what causes inflationWhat is the average interest rate and maturity schedule of the U.S. national debtHow the Bank of Amsterdam is an example of how central banks can go insolvent and shut downWhy the dollar has an exorbitant privilegeThanks to Policygenius and Hello Fresh for sponsoring the episode. Use code david12off for 12 free meals with free shipping from Hello Fresh. For more information on this episode click here. Show Notes Where Did Americans Move in 2020? by Janelle Cammenga—Tax Foundation Velocity of M2 Money Stock (M2V) Chart—Federal Reserve Bank of St. Louis Federal Surplus or Deficit [-] as Percent of Gross Domestic Product (FYFSGDA188S) Chart—Federal Reserve Bank of St. Louis How the CPI measures price change of Owners’ equivalent rent of primary residence (OER) and Rent of primary residence (Rent)—U.S. Bureau of Labor Statistics Consumer Price Index – March 2021—U.S. Bureau of Labor Statistics Table 1 (2017 – 2018 Weights). Relative importance of components in the Consumer Price Indexes: U.S. city average, December 2020—U.S. Bureau of Labor Statistics Inflation and Debt by John H. Cochrane, Fall 2011—National Affairs US Government Finance: Debt by Dr. Edward Yardeni and Mali Quintana—Yardeni Research, Inc. Can the Central Bank Alleviate Fiscal Burdens? by Ricardo Reis—London School of Economics and Political Science BIS Working Papers No 902 An early stablecoin? The Bank of Amsterdam and the governance of money by Jon Frost, Hyun Song Shin, and Peter Wierts—Bank of International Settlements EXCHANGE ARRANGEMENTS ENTERING THE 21ST CENTURY: WHICH ANCHOR WILL HOLD? by Ethan Ilzetzki, Carmen M. Reinhart, and Kenneth S. Rogoff Related Episodes and Content A Complete Guide to Understanding and Protecting Against Inflation 287: What Causes Hyperinflation and How To Prepare For It 295: Federal Reserve Insolvency and Monetizing the National Debt
Apr 14
26 min
Why in the World Do You Own Bonds?
With interest rates rising does it still make sense to own bonds? Yes. This episode explores the role of bonds including why they are more effective at hedging stock losses than protective put options. Topics covered include:David's business and investment philosophyHow bond funds have performed in 2021Three disparate views on the direction of interest rates from Capital Economics, Ray Dalio, and Hoisington Investment Management CompanyHow to invest in China bondsWhy owning bonds is cheaper and more effective at hedging stock market losses than put optionsHow covered call strategies workHow to decide on your allocation to bonds versus stocks Thanks to Mint Mobile for sponsoring the episode. For more information on this episode click here. Show Notes What I think, not what I thought – Jason Fried Why in the World Would You Own Bonds When… – Ray Dalio Explainer: Foreign access to China’s $16 trillion bond market – Reuters The True Cost of Hedging S&P Downside - Movement Capital Revisiting Covered Calls and Protective Puts: A Tale of Two Strategies – Bryan Foltice Pathetic Protection: The Elusive Benefits of Protective Puts – Roni Israelov Related Episodes 302: Investing Is Not Knowing 255: With Interest Rates Falling, Why Do You Own Bonds? 225: How To Invest in Bonds
Mar 31
23 min
Own What Is Real
There has never been this much money in the world. Now is the time to own real property. Topics covered include:How to buy something with BitcoinHow cryptocurrencies are similar and different from fiat currenciesWhat is legal tenderWhy there has never been this much money in the worldWhy central banks can control interest rates but not inflationWhat real property should investors own Thanks to Truebill and Babbel for sponsoring the episode. Use code David for Babbel to get an additional three months free. For more information on this episode click here. Show Notes The Power of Gold: The History of an Obsession by Peter L. Bernstein IRS Virtual Currency Guidance Announcement 2014-21—Internal Revenue Service Legal Tender Status—U.S. Department of the Treasury India to propose cryptocurrency ban, penalising miners, traders - source by Aftab Ahmed, Nupur Anand—Reuters Executive Order 6102—Requiring Gold Coin, Gold Bullion and Gold Certificates to Be Delivered to the Government by Franklin D. Roosevelt—The American Presidency Project Total Circulating Bitcoin—Blockchain Charts Federal Reserve statistical release: Factors Affecting Reserve Balances, March 18, 2021—United States Federal Reserve Money Stock Measures – H.6 Release, March 23, 2021—Board of Governors of the Federal Reserve System M2 Money Stock/Gross Domestic Product—Federal Reserve Bank of St. Louis Monthly Budget Review: Summary for Fiscal Year 2020—Congressional Budget Office A Fed With No Fear of Inflation Should Scare Investors by James Mackintosh—The Wall Street Journal Biden Administration Officials Put Together $3 Trillion Economic Plan by Ken Thomas and Andrew Duehren—The Wall Street Journal Turkey faces a currency crisis after Erdogan sacks his central banker—The Economist Related Episodes 295: Federal Reserve Insolvency and Monetizing the National Debt 316: Paper, Rocks, or Digits—What Makes the Best Money 322: Why Currency Exchange Rates Matter
Mar 24
23 min
Are Non-fungible Tokens (NFTs) Good Investments?
How do non-fungible tokens work, what are the risks, and how do NFTs fit within the landscape of investments. Topics covered include:Investing in physical art versus cryptoartHow NFTs work on the ethereum blockchainHow Ethereum differs from BitcoinWhat is the purpose of investing and are NFTs investmentsHow much energy do cryptocurrencies and the financial system consumeWhat are the risks of NFTsThanks to Amazon Pharmacy and SmartAsset for sponsoring the episode. For more information on this episode click here. Show Notes Want to Buy an NFT? Here’s What to Know by Amber Burton—The Wall Street Journal From Crypto Art to Trading Cards, Investment Manias Abound by Erin Griffith—The New York Times NFTs, explained by Mitchell Clark—The Verge HERE IS THE ARTICLE YOU CAN SEND TO PEOPLE WHEN THEY SAY “BUT THE ENVIRONMENTAL ISSUES WITH CRYPTOART WILL BE SOLVED SOON, RIGHT?” by Everest Pipkin 39% of PoW mining is powered by renewables – Cambridge University Cryptoasset study by Gareth Jenkinson—The Daily Chain Cambridge Bitcoin Electricity Consumption Index Bitcoin Energy Consumption Index—Digiconomist Ethereum Energy Consumption Index (beta)—Digiconomist The Bitcoin vs Visa Electricity Consumption Fallacy by Carlos Domingo—Hacker Noon How much would you pay for a virtual sofa? by Anne Quito—Quartz The Wisdom of Finance: Discovering Humanity in the World of Risk and Return by Mihir Desai Techno-optimism, behaviour change and planetary boundaries by Adair Turner—Keele World Affairs Lectures on Sustainability Related Episodes 167: Is Bitcoin Better At Money Than The Dollar? 182: Was Tulipmania Just Like Bitcoin? 228: How Tokenization Will Radically Change Investing
Mar 17
24 min
Should You Invest in Farmland?
How much can you earn investing in farmland and what are the risks? What are the ways to invest in farmland? Topics covered include:What determines farmland investment returnsHow much has U.S. farmland appreciated historicallyHow much income does farmland investing generateWhy the amount of U.S. farmland is shrinkingHas another commodity supercycle startedWhy U.S. farmers are dependent on exportsWhat are farmland investing risksWhat farmland investment vehicles are availableHow to evaluate a farmland investment opportunity Thanks to LinkedIn and Policygenius for sponsoring the episode. For more information on this episode click here. Show Notes Farmland Values, Land Ownership, and Returns to Farmland, 2000-2016 by Christopher Burns, Nigel Key, Sarah Tulman, Allison Borchers, and Jeremy Weber—United States Department of Agriculture Land Values 2020 Summary—United States Department of Agriculture Farming and Farm Income—Economic Research Service United States Department of Agriculture Agricultural Markets and Prices: Towards 2025—Organisation for Economic Co-operation and Development U.S. Agricultural Trade at a Glance—Economic Research Service United States Department of Agriculture Why Invest In Farmland?—AcreTrader FarmTogether Farmland Index Posts First Negative Return in 19 Years by Mike Walsten—Pro Farmer NCREIF Farmland Property Index Lumber Prices Are Soaring. Why Are Tree Growers Miserable? by Ryan Dezember and Vipal Monga—The Wall Street Journal Pistachio industry looks to reposition product amid supply boom by John Cox—The Bakersfield California Related Episodes 218: Is China or the U.S. More Vulnerable? 232: Is It Time To Invest In Commodities? 328: Are You Underweight Chinese Stocks? Pros and Cons of Investing in China
Mar 10
26 min
How The Covid Shock Nearly Destroyed The Financial System
Why the Federal Reserve had to step in again to sop runs on money market mutual funds and keep the financial system from imploding. Topics covered include:What are the differences between shocks and vulnerabilitiesWhat are the four main vulnerabilities the Federal Reserve monitorsHow deleveraging and demands for liquidity lead to market stressesWhat are the types of money market funds and how were they impacted by the Covid 19 shockHow was Treasury bond trading impacted by the Covid shockWhy the Federal Reserve stepped in to stop the market contagion from spreadingWhat are the downsides to central bank interventionsWhat individual investors can do to protect against future shocks Thanks to Mint Mobile and Truebill for sponsoring the episode. For more information on this episode click here. Show Notes President’s Working Group on Financial Markets Releases Report on Money Market Funds—U.S. Department of the Treasury Report of the President’s Working Group on Financial Markets: Overview of Recent Events and Potential Reform Options for Money Market Funds, December 2020—U.S. Department of the Treasury U.S. Credit Markets Interconnectedness and the Effects of the COVID-19 Economic Shock by S.P. Kothari, Dalia Blass, Alan Cohen, Sumit Rajpal, and SEC Research Staff—U.S. Securities and Exchange Commission Financial Stability Report November 2020—Board of Governors of the Federal Reserve System How Vanguard Overhauled a Prime Money Fund by Bernice Napach—ThinkAdvisor Overnight Index Swap by James Chen—Investopedia Cash Viewpoint: What do Variable Rate Demand Notes do for Your Money Market Fund—Invesco Related Episodes 270: Repo Rates Soared—Here’s Why It Matters 291: How To Survive the Coronavirus (COVID-19) Shutdown 305: Are Banks Safe?
Mar 3
26 min
What Is Tail Risk and Are You Taking Too Much Of It?
When should you protect against rare, but extreme events? When should you self-insure? Under what circumstance should you sell tail risk protection to others? Topics covered include:How tail events differ from tail riskWhy volatility is not the best measure of risk for individualsWhat does it cost to protect against large stock market lossesWhy younger investors can take more risk due to their human capitalHow does the profit wheel options strategy workHow the catastrophic power outage in Texas exemplifies tail riskWhy individuals need to build more reserves because the economic system is too efficient and vulnerable to breakdowns Thanks to SmartAsset and Babbel for sponsoring the episode. Use code DAVID for Babbel to get three months free. For more information on this episode click here. Show Notes Average Weather in San Antonio Texas, United States—Weather Spark Update on the CBOE BuyWrite and PutWrite Option Indexes, October 2018—Asset Consulting Group The Texas Freeze: Why the Power Grid Failed Katherine Blunt and Russell Gold—The Wall Street Journal His Lights Stayed on During Texas’ Storm. Now He Owes $16,752 by Giulia McDonnell Nieto del Rio, Nicholas Bogel-Burroughs, and Ivan Penn—The New York Times When More Is Not Better: Overcoming America’s Obsession with Economic Efficiency by Roger L. Martin Related Episodes 250: Investing Rule One—Avoid Ruin 283: Why You Should Care About Carry Trades 321: How to Analyze Complex Investments 323: The Economy Is Not A Machine
Feb 24
26 min
Why Do We Work So Much?
How to structure employment so workers are more creative, productive, and happier. Topics include:What percentage of employees work at home due to the pandemicHow many hours per week do men and women work in both paid employment and unpaid caregivingHow workers have been allocating the time saved by not commutingWhy the economy would still prosper if we worked only four hours per dayWhat is the cult of efficiencyWhat is the difference between leisure and amusementWhy employers reward busyness at workHow work can be more satisfying and create Thanks to LinkedIn and Policygenius for sponsoring the episode. For more information on this episode click here. Show Notes 60 million fewer commuting hours per day: How Americans use time saved by working from home by Jose Maria Barrero, Nick Bloom and Steven J. Davis Mental health: C-suite struggles in the pandemic by Rachel Ranosa—Human Resources Director Deep Work (Rules for Focused Success in a Distracted World) by Cal Newport In Praise of Idleness by Bertrand Russell—Harper's Magazine Do Nothing: How to Break Away from Overworking, Overdoing, and Underliving by Celeste Headlee Aristotle's Nicomachean Ethics by Aristotle translated by Robert C. Bartlett and Susan D. Collins Rest: Why You Get More Done When You Work Less by Alex Soojung-Kim Pang The Art of the Siesta by Thierry Paquot When More Is Not Better: Overcoming America's Obsession with Economic Efficiency by Roger L. Martin Related Episodes 107: Work, Freedom and Leaving A Legacy 184: Massive Job Losses Are Inevitable But There Will Still Be Work 323: The Economy Is Not A Machine
Feb 10
23 min
Is Silver the Next GameStop? How to Invest in Silver
Why has silver jumped to its highest price in eight years. What you need to know to invest in silver. Topics covered include:What drove the huge spike in silver purchasesHow silver differs from meme stocksHow hedge funds are positioned with regard to silverWhat are three ways to invest in silverWhat is the annual demand and supply for silverWhat are the reasons to own silverHow good has silver been as an inflation hedgeWhat is the gold-silver ratio and how to use itWhat happened when the Hunt brothers tried to corner the silver marketWhat evidence is there that the silver market is manipulated Thanks to Mint Mobile for sponsoring the episode. For more information on this episode click here. Show Notes Silver Prices Surge to Eight-Year High Amid Reddit-Fueled Frenzy by Eddie Spence, Jake Lloyd-Smith, and Yvonne Yue Li—Bloomberg r/wallstreetbets Silver price retreats rapidly in blow to new retail buyers by Henry Sanderson and Neil Hume ‘What’d You Miss?’ Full Show (02/01/2021)—Bloomberg Silver Price Chart—BullionVault Silver Supply and Demand—The Silver Institute Understanding Futures Expiration & Contract Roll—CME Group Silver $50: Three Years After the “Shortage” by Miguel Perez-Santalla—BullionVault JPMorgan Admits Spoofing by 15 Traders, Two Desks in Record Deal by Tom Schoenberg and Matt Robinson—Bloomberg CME Hikes Silver Margins After Prices Surge to Eight-Year High by Yvonne Yue Li
Feb 3
24 min
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