You Think Meta’s Bleeding Cash? Take a Look at the Fed...

[The Daily Peel... ]() Nov 1, 2022 | Peel #328 Score WSO swag by checking out our sponsors [The Daily Valet. ]() By signing up with one of our sponsors, you’ll automatically get entered to win one of 5 WSO t-shirts we give away each and every week, AND free access to our Excel Modeling Course. It takes less than 1 minute and helps keep The Daily Peel running. Thanks for your support! Market Snapshot After marching higher throughout October, stocks traded down slightly on Halloween. Meanwhile, JPow’s rapid tightening is making the Fed lose money, Brazil has a new president, and nat gas prices are soaring. [image] Banana Bits - Don’t feel too bad for Twitter’s recently-canned execs—they’re taking home [$141mn](=) in golden parachutes - Brazil’s former leader [Luiz da Silva]( edged out current president Jair Bolsonaro to win the presidency - Rising inventory levels are finally [bringing new car prices down]( - That blue check on Twitter is going to cost you [$20/month going forward](=) The M&A World Is Changing Fast [image]( What if I told you those ‘pls fix’ pings from your MD could be a thing of the past? The M&A world is changing faster than the U.K.’s Prime Minister, and traditional workflows could be upended by new digital tools. M&A is complex—there’s a reason banks hire hundreds of analysts to sort through the details of complicated transactions. But new tech is changing how the industry operates, and laggards will be left in the dust. This M&A webinar features experts from the industry talking shop on the future of dealmaking. Speed and knowledge have always been the hallmarks of a great dealmaker, and harnessing data in the right ways can improve both. If you’re one of the first 50 to sign up for the webinar on 11/3 through The Daily Peel, you could win: - 100 bucks to spend at Amazon OR - A powerbank and a notebook All you have to do is actually attend and your name will be added to the raffle. Seriously, this is insane—we don’t get deals this good very often. [Learn M&A + Win 100 bucks](=) Macro Monkey Says Americans Have Too Much Cash The idea behind the monetary pain we’re all feeling is pretty straightforward—when borrowing costs go up, people spend less, and inflation comes down. But when you print trillions in new dollars, the equation gets distorted. - If consumers and businesses have plenty of cash to fund expenses, higher borrowing costs won’t dent inflation as much - U.S. households still have [over $1 trillion in savings]() they can burn before dipping into credit, and local governments are flush as well - Some Fed governors are expressing concern that rates may have to clear 5% to sufficiently tame inflation - A tight labor market further dampens the effects of higher rates Meme of the Day [image] [Source]() What's Ripe Getty Images Holdings ($GETY) ↑ 34.65% ↑ - You probably know Getty from its watermarks on stock images, but it’s gotten caught up in the meme stock frenzy lately - Anyone shorting this thing better get the hell out of the way Natural Gas Futures (NG00) - After plunging for the last month and a half, nat gas prices shot up Monday - Panic over shortages ratcheted up nat gas supply in September, which sank prices initially, but the market is snapping back to a more normalized level What's Rotten Doordash ($DASH) ↓ 7.50% ↓ - The food delivery market leader reports earnings on Nov 3rd, and sh*tty results from other instant delivery companies have the market bearish - $DASH has maintained its market leadership despite Uber’s much deeper pockets, but a downturn could change that Airbnb ($ABNB) ↓ 7.20% ↓ - Higher mortgage rates have squeezed Airbnb hosts’ profits, and properties are starting to come off the platform as a result - CEO Brian Chesky will make his case during its earnings call Tuesday, and the entire travel industry will be tuning in Data Peel [image] [Source]() Thought Banana Fed’s 2023 Guidance: $60 Billion in Losses Losses aren’t really losses when you have a money printer in hand. But the Fed is technically now losing money as higher rates have increased what it pays banks to keep money in its coffers. - Its bond-buying spree in response to the C-19 shock [swelled its balance sheet]() to nearly 10 times its level in the early 2000s - Fed “losses” [basically just mean]( writing IOUs to the Treasury, which are expected to reach $60 billion next year - Monetary policy shouldn’t really be affected by the losses, but it highlights the difficulty of managing a $9 trillion balance sheet The big question: Will the Fed’s balance sheet ever return to its pre-Great Recession level of less than $1 trillion, or has all that money printing guaranteed it will only get bigger in the future? Banana Brain Teaser Yesterday — A man builds a house with all 4 sides facing south. A bear walks past the house. What color is the bear? White. The house is built directly on the North Pole. Today — It’s 100 bananas off the [Hedge Fund Interview Course](=). LFG! If you were standing directly on the south pole facing north, which direction would you travel if you took one step backward? Shoot us your guesses at [vyomesh@wallstreetoasis.com](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) with the subject line “Banana Brain Teaser” or simply [click here to reply!](mailto:vyomesh@wallstreetoasis.com?subject=Banana%20Brain%20Teaser) How would you rate today’s Peel? [image]() [image]() [image](=) [All the bananas](=) [Decent]() [Rotten AF](=) Happy Investing, Patrick & The Daily Peel Team Was this email forwarded to you? Sign up for the WSO Daily Peel [here](. [ADVERTISE]() // [WSO ALPHA]() // [COURSES](=) // [LEGAL](=) Don't want The Daily Peel? [Unsubscribe here](. Click to [Unsubscribe]( from ALL WSO content IB Oasis Corp. (aka "Wall Street Oasis") 20705 Saint Charles St Saratoga, California 95070 United States