A leading economist shares why crisis-time central bank policies are saving zombie companies while hurting small businesses and startups.

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

This episode is sponsored by Bitstamp and Crypto.com.

Today on the Brief:

  • Social media apps get caught in geopolitical tensions 
  • Pitchforks around the Paycheck Protection Program 
  • Brazil blocks Binance

Our main discussion is with Daniel Lacalle. Daniel is chief economist at Tressis and is the author of numerous books including “Life in the Financial Markets,” “Escape from the Central Bank Trap” and his most recent, “Freedom or Equality.” He has been named one of the 100 most influential economists in the world by Richtopia. 

See also: Is Scam Selling Suppressing the Price of Bitcoin?

In this conversation, he and NLW discuss:

  • Why the recovery will likely be “L” shaped and uneven, not “V” shaped
  • Why the central bank driven “bailout of everything” undermines capitalism and promotes zombie companies that can’t service their debts
  • Why zombie companies crowd out space for startups and small businesses 
  • How government programs can incentivize relationships with government over strong business practices 
  • How the current economic crisis could become a banking crisis

Find our guest online:

Website: dlacalle.com

Twitter: @dlacalle_IA

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.