As we head into hot vax summer, Americans might actually be in the position to spend their money on cocktails and movies and gym memberships and travel, reversing the imbalance of an economy powered by purchases of durable goods. But the glut in people’s bank accounts, according to one theory, has also led to a rise in financial speculation, which could build recovery on unsustainable ground and lead to an eventual crash.
The Berkshire Hathaway annual meeting served as the chief venue for such scolding, putting a lot of weight on retail investing, amid the rise of Robinhood apps and YOLO trades. Warren Buffett and his business partner Charlie Munger savaged the developers of options trading apps, with Buffett lamenting that they “tak[e] advantage of the gambling instincts of society,” and Munger saying it’s “god-awful that something like that brought investments from civilized men and decent citizens.”
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