Podcast: Edward Chancellor - Author of The Price of Time, The Real Story of Interest

Edward Chancellor is a financial historian, journalist, investment strategist, and author of The Price of Time, The Real Story of Interest. This is an essential book for investors who want to understand the impact of interest rates.

LINKS
Listen to this episode on your favourite podcast platform: https://pod.link/1511595070
Edward Chancellor's website: https://www.edwardchancellor.com/
Link to the book: https://www.edwardchancellor.com/book...
I also recommend Edward Chancellor's previous book: Devil takes the hindmost (a history of financial bubbles)

QUOTES FROM EDWARD CHANCELLOR'S INTERVIEW:
"If interest is an omnipresent phenomenon and the ultra-low rates wormed their way into all economic and financial activity, then it would follow that the everything bubble turns into the everything burst."
"If you know history, this late 1990s stock market looks a hell of a lot like the British Railway Mania of the 1840s. You've got a new technology. People are getting very excited about it. Very, very similar patterns. If you know the history, you are aware of the vulnerability of the markets."
"You couldn't really understand the world unless you understood interest. And you have to bear in mind the Fed funds rate of 0% and the negative interest rates in Europe and in Japan. But those zero rates and negative rates were the lowest interest rates in five millennia of history. So that, that obviously has to be a noteworthy factor."
"If you think about it, losses on subprimes took two and a half years to the Lehman's blowup. Everyone expects that everything happens very quickly, and the timeline seems to be compressed after the fact. But if you're living through it, it takes much longer."

TIMESTAMPS
00:00 Teaser: The Everything Bubble
00:19 Introducing Edward Chancellor
01:31 A historian in the investment world
06:21 The study of human activity can't be explained by science
08:46 The historian’s edge - based on Ed Chancellor's career
14:30 The problem with models
16:46 The consensus view on interest and inflation
22:04 The 5 roles of interest
27:33 Buffett's quote on interest rates and gravity
30:40 Interest rates, investment decisions
33:49 The Everything bubble
36:15 Where the cracks show
37:48 Active management
38:19 Areas most at risk
39:48 PE troubles
45:58 Regional bank may collapse, but we are early in the burst
47:56 Bubbles burst slowly

ABOUT THE PODCAST
Investorama is your guide to the future of investing, without the hype. In each episode, reformed investment banker and marketer, George Aliferis and his guests take a deep dive into a key topic that shapes our financial future.
George is a reformed investment banker & marketer, who is now running Orama (podcast & video company), as well as its content arm Investorama, a podcast, YouTube channel and Newsletter.