Warren Buffett’s right-hand man and Berkshire Hathway’s vice chairman Charlie Munger He has been vocal in his criticism of cryptocurrency, comparing them to previous generations. “venereal disease” and It is said that anyone selling crypto is either “delusional or evil.”
In the wake of FTX’s collapse this month, Munger Double down on Those are just a few of the criticisms.
“It’s partly fraud and partly delusion,” He told CNBC on Squawk Pod. “That’s a bad combination. I don’t like either fraud or delusion, and the delusion may be more extreme than the fraud.”
Munger added that he does not believe crypto is a real asset—and It shouldn’t have been allowed.
“This is a very, very bad thing,” Munger said. “The country did not need a currency that was good for kidnappers…There are people who think they’ve got to be on every deal that’s hot. They don’t care whether it’s child prostitution or bitcoin. If it’s hot they want to be on it. I think that’s totally crazy.”
It all comes down to the Federal Reserve, however Munger He had more to say about him than his billionaire counterparts.
He opposed it. the Idea that the Fed should be held responsible for pushing potentially the In an effort to bring inflation down to 2%, the economy is forced into recession.
The Fed is “willing to have a little recession in order not to have out-of-control inflation”—that’s what they’re supposed to do, he said. “They’re supposed to be the one guy at the party that doesn’t hang around the punch bowl getting drunk.”
His remark references an old saying that it’s the Fed’s job to take away the punch bowl Just as the party Starts, derived from a 1955 speech by William McChesney Martin, Jr., Fed Chair the institution’s responsibility to prevent high inflation.
But when CNBC’s Becky Quick responded that a lot of people say the Fed is the One who provided the punch bowl, Munger said: “I think that’s pushing it.”
“We were in enough trouble when this thing started, that if the Fed hadn’t done what it did—which was very aggressive—we would have had one hell of a mess, which would have been way worse than what we have now,” He stated.
Inflation reached a four-decade high in June at 9.1%, before falling to 7.7% in October. This has sparked optimism and Expectations that the Fed could pivot and After this year’s aggressive approach that lifted, rate hikes have slowed down. the A benchmark rate that can range from 3.75% to 4.5%.
The new weekly Impact Report newsletter will explore how ESG expectations are being met. and These issues have a significant impact the Roles and responsibilities of today’s executives—and How they can navigate these challenges the best. Register here