Episode 118

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Published on:

24th Feb 2023

Sam Zell, No Landing and $1 Trillion Dollars of Debt

Bank of America analysts warn that the U.S. economy could be headed for a "no landing" scenario thanks to the hot labor market, but that might not be good news for the stock market. BoA chief economist Michael Hartnett predicted a "no landing" scenario in the first half of the year, where there is no immediate slowdown in growth but inflation remains above trend. That would likely force the Fed to raise interest rates much higher than previously forecast — and keep them elevated for longer.

In this episode of The Higher Standard, Chris and Saied examine this news and what it could mean for the economy as a whole.


They discuss comments from Equity Group Investments founder and chairman Sam Zell, stating that Jerome Powell "missed the boat" on inflation, allowing "super-low" interest rates to exist for too long.


Chris and Saied look at a warning from economist Mohamed El-Erian that the Federal Reserve won’t be able to get US inflation down to its 2% target without “crushing the economy.” He added that the central bank is unlikely to officially change that goal post.


They also offer some thoughts on a tweet from Charlie Bilello, Chief Market Strategist for Creative Planning, LLC, indicating that only 21% of homes for sale in the US sold above their final list price in the last 4 weeks, down from 40% a year ago. This is the lowest % since March 2020.


Join Chris and Saied for this fascinating and informative conversation.


Enjoy!


What You’ll Learn in this Show:

  • Why holding rates for a prolonged period of time will create mental strain for people.
  • The definition of a 'hard landing,' and what it means for the economy.
  • Why household debt saw its largest increase in 20 years in New York.
  • Whether the FOMC has the courage, after holding rates for 6-8 months, to raise them again.
  • And so much more...


Resources:

The Real Deal via Instagram

"Bank of America Says Stock Market Threatened With 'No Landing' Scenario" (article from Entrepreneur)

"All aboard the mortgage rate roller coaster" (The Data Deli via Instagram)

"Fed Can’t Reach 2% Inflation Without Crushing Economy, El-Erian Says" (article from Bloomberg)

Charlie Bilello via Twitter

"Americans Have Nearly $1 Trillion in Credit Card Debt" (article from Bloomberg)

"Investors Worry Too-Hot Economy Will Put Fed on More Aggressive Rate Path" (article from The Wall Street Journal)



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About the Podcast

The Higher Standard
This isn’t a different standard, it’s the higher standard.
Welcome to the Higher Standard Podcast, where we give you ultra-premium, unfiltered truth when it comes to building your wealth and curating the lifestyle of your dreams. Your hosts; Chris Naghibi and Saied Omar here to help you distill the immense amount of information and disinformation out there on the interwebs and give you the opportunity to choose a higher standard for yourself. Sit back, relax your mind and get ready for a different kind of podcast where we elevate your baseline with crispy high-resolution audio. This isn't a different standard. It's the higher standard.

About your host

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Christopher Naghibi

Christopher M. Naghibi is the host and founder of The Higher Standard podcast — a rapidly growing media platform delivering unfiltered financial literacy, real-world entrepreneurship lessons and economic commentary for the modern era.

After nearly two decades in banking, including his most recent role as Executive Vice President and Chief Operating Officer of First Foundation Bank (NYSE: FFWM), Christopher stepped away from corporate life to build a brand rooted in truth, transparency, and modern money insights. While at First Foundation, he had executive oversight of credit, product development, depository services, retail banking, loan servicing, and commercial operations. His leadership helped scale the bank’s presence in multiple national markets from $0 to over $13 billion.

Christopher is a licensed attorney, real estate broker, and general building contractor (Class B), and he brings a rare blend of legal, operational and real estate expertise to everything he does. His early career spanned diverse lending platforms, including multifamily, commercial, private banking, and middle market lending — holding key roles at Impac Commercial Capital Corporation, U.S. Financial Services & Residential Realty, and First Fidelity Funding.

In addition to his media work, Christopher is the CEO of Black Crown Inc. and Black Crown Law APC, which oversee his private holdings and legal affairs.

He holds a Juris Doctorate from Trinity Law School, an MBA from American Heritage University, and two bachelor degrees. He is also a graduate of the Yale School of Management’s Global Executive Leadership Program.

A published author and sought-after speaker (unless it’s his son’s birthday), Christopher continues to advocate for financial empowerment. He’s worked pro bono with families in need, helped craft affordable housing programs through Habitat for Humanity, and was a founding board member of She Built This City — helping spark interest in construction and trades for women of all ages.