Episode 585: Neal and Toby dive into the latest report from Moody’s that downgraded the US credit rating due to increasing debt and budget deficits. Then, a wave of attacks on the crypto-wealthy is sweeping Europe and parts of the US that has forced individuals to hire bodyguards. Also, New Jersey has seen an increasing share of transit fiascos in land, sea, and air recently, but seems like some headway is made with the locomotive engineers’ union agreeing to end the strike. Meanwhile, big cities got bigger in 2024 and the WNBA season is back with a bang. Finally, what you need to know in the week ahead. Subscribe to Morning Brew Daily for more of the news you need to start your day. Share the show with a friend, and leave us a review on your favorite podcast app. Listen to Morning Brew Daily Here: https://www.swap.fm/l/mbd-note Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow 00:00 - Joe Biden Cancer Diagnosis 02:40 - Moody’s Downgrades US Credit Rating 06:40 - Crypto Criminals 10:20 - NJ Transit Issues 15:20- Winners of the Weekend 21:10 - Week Ahead Learn more about your ad choices. Visit megaphone.fm/adchoices
Chapter 1: What happened with Joe Biden's cancer diagnosis?
Jeder Läufer kennt diesen Moment, wenn es einfach klickt. Wenn deine Beine einfach mitgehen, der Schmerz nachlässt, die Zweifel weg sind und du nur noch das Runners High spürst. Das ist der Grund, warum du so früh aufstehst. Warum dich ein bisschen Regen nicht aufhält. Warum Laufen zum Ritual wird. Also laufe und fühle das Runners High. Go Wild und erfahre mehr übers Laufen auf puma.de
Chapter 2: Why did Moody's downgrade the US credit rating?
Guten Morgen, Bruder Daily Show. Ich bin Neil Freiman. Und ich bin Tobi Howell. Heute hat die USA ihre letzte AAA-Kreditrate verloren. Zeit, zu paniken oder zu schreien.
Dann eine Wave von brazen Verbrechungen rockt die Krypto-Industrie. Es ist Montag, Mai 19. Lass uns fahren.
Welcome back to the week. Sad news has come in about former President Biden, who was diagnosed with an aggressive form of prostate cancer, his office said yesterday. The 82-year-old's diagnosis is serious, with the cancer spreading to his bones and characterized by a Gleason score of 9, which is how the most aggressive prostate cancers look under a microscope.
The good news is that managing prostate cancer has come a long way in recent years, allowing patients to live years, not just months, with current treatments. And Biden's office said his cancer appears to be hormone sensitive, which allows for effective management.
Following the news, lawmakers across the spectrum, including President Trump, former President Obama and other Democratic and Republican leaders, expressed their support for Biden on social media.
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Chapter 3: What threats are crypto-wealthy individuals facing?
Ja, following the diagnosis, former President Obama said, nobody has done more to find breakthrough treatments for cancer in all its forms than Joe. And what he's referring to there is the cancer moonshot program that the White House announced back in 2016 with the goal of eliminating cancer as we know it. It eventually became known as the Beau Biden Cancer Moonshot Initiative. Vielen Dank.
Vielen Dank. Das ist eine symbolische Bewegung, weil das bedeutet, dass die USA keine mehr eine AAA-Kreditrate von einer der drei großen Rating-Agenzien haben.
S&P Global Ratings downgraded it in 2011, followed by Fitch in 2023. To justify its decision, Moody's said the US was being irresponsible with its bank account, running up large fiscal deficits and paying more and more in interest to It all amounts to a big reputational blow for the world's largest economy.
But what it means in practice or for your brokerage account remains unclear since markets haven't been open since the announcement. We'll learn a lot more today and early indications are it's not going to be great. Bonds are selling off, sending the 30-year yields higher than 5% and stocks in the dollar are also falling.
Chapter 4: What issues are affecting New Jersey's transit system?
That's precisely the sell America trade that have been spooking investors in recent weeks.
Yeah, this was both a surprise, but then not really at all. It was a surprise because Moody's had held out for so long and nothing super major had changed. But it's also not a surprise because you're right, S&P and Fitches were on this AA1 bandwagon long before now. And when you dig into the numbers, it's not super pretty. The US government paid over $1.1 billion.
Trillionen Dollar in Interests on his debt last year. That's bigger than the Pentagon's entire budget. And Moody's is concerned that going forward, the US won't be able to generate enough tax revenue to actually cover the interest on his debt, which could lead to the nasty cycle of having to borrow more money just to pay interest on the money it's already borrowed.
So again, and then when you throw in Trump's big, beautiful bill again, Es ist keine große Überraschung, dass das passiert. Nur die Zeitung, ohne dass es ein beeindruckendes Event ist, ist das Einzige, was einige Leute in den Kopf gerissen hat.
Was war die Antwort auf das? Well, Treasury Secretary Scott Bassett wurde auf den Sonntagsschauen über es gestern Morgen gefragt. Er hat es ein bisschen verabschiedet. Er hat gesagt, Moody's ist ein laggierender Indikator. Das ist, was alle sagen. Trinks of Credit Agencies.
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Chapter 5: Who were the winners of the weekend?
But just a few months ago he was in front of Congress and he actually told lawmakers that he was very worried about debt and deficits. He said the debt numbers are indeed scary and a crisis would involve a sudden stop in the economy as credit would disappear. I'm committed to that not happening. So with one side he's saying this is not a big deal.
With the other he's saying actually Moody's is touching on a very important point, which is that our debt situation has gone completely out of control. Und ich denke, jeder Gesetzgeber würde das akzeptieren. Sie tun einfach nichts, um es mehr in den Balance zu bringen.
Und wir bleiben nur noch das Defizit hinzufügen, die Schulden hinzufügen und Interestspartien hervorrufen, die wir nicht bezahlen können. Oder wir können sie bezahlen, aber sie flotten.
Ja, sie flotten. Und es hat auch nur geforderte Angst vor dem US-Bondsmarkt. Der große Angst hier ist, ob Investoren, sowohl gewaltige Investoren als auch institutionelle Investoren, werden sie die Treasuries für andere Safe Haven-Assets swappen, die wir bereits gesehen haben. A little bit. And we're already seeing yields start to rise in response to the downgrade.
It's definitely one of those things where like, oh no, will investors just start ignoring US bonds? If you go back in history, that hasn't really been the case, because actually foreign investors have piled into even more US debt since FITS first downgraded the US back in 2011. So maybe it's not the big alarm bells that people are seeing. That being said, though, we did see yields rise overnight.
So maybe there is something more to this particular downgrade. A kidnapping attempt in broad daylight has gripped Paris and drawn new attention to a disturbing trend sweeping Europe, crypto-millionaires being targeted by criminals.
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Chapter 6: What should we look forward to in the week ahead?
The inciting incident took place back on May 13th, where three hooded men were caught on camera jumping out of a white van in an upscale neighborhood of Paris and trying to snatch the daughter of a prominent crypto-millionaire in broad daylight.
There has been a recent surge in similar instances, including two that have involved fingers of loved ones being chopped off and sent to crypto millionaires to demand a payment.
Obviously, the attacks have shaken the industry to its core, which semi-ironically has resulted in calls from crypto magnates for increased government intervention, not something you usually hear from fans of decentralization."
Die Gefühle für physische Sicherheit haben sich auch im Hinblick auf einen berühmten Coinbase-Bereich aufgeräumt, welcher Hackern den Zugang zu Kundendaten ermöglicht hat, um noch mehr kripto-freie Individuen im Risiko von echten Threaten zu verursachen.
Neal, einige der Details von diesen Abduktionsszenen sind aus einem Film herausgepumpt, vollständig mit Ransomnoten und Copycat-Attacken, die die Staatsanwaltschaft dazu gebracht haben, zu glauben, dass organisierte Krimi involviert worden sind. Es ist also eine sehr furchtbare Zeit, ein kripto-reicher Individuum zu sein.
Ja, besonders nach diesem Coinbase-Hack. Die Sache mit der Krypto, die die Leute lieben, ist die Geschwindigkeit und die Anonymität. Das macht sie auch sehr, sehr viel ein Ziel für Kriminelle, weil, anders als ein institutioneller, traditioneller Finanzbankkonto, You can't freeze these assets.
So if I were a criminal and I go up to you and I kidnap you and I say, hey, give me your private key so I can access your crypto wallet with all of that money and you give it to me, then that is going to be instantaneously and it's going to be extremely hard to recover, which is why this industry has been such an increasing target of criminals. Prices of crypto have also gone up, but Bitcoin is
Und dann auch, ironisch gesagt, die Industrie hat sich natürlich schon lange über Krimi kennengelernt, also sie haben viel Arbeit gemacht, um sich gegen Krimi zu schützen.
Die Online-Systeme machen es weniger gefährlich für Hacker, die versuchen, Geheimdienste zu stehlen. Aber das hat sie dementsprechend mehr zu physischen Angriffen verursacht. Denn wenn man online nicht reinkommt, bedeutet das, dass man sie in der realen Leben kidnappt. Es ist also fast ein perverses Incentiv, das Kriminelle verursacht hat, Menschen zu starten. IRL.
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