Morning Market Download from Invincible Money 

Personal finance + economics + markets 

Staying on top of the markets, economics and the global issues that affect your money takes a lot of time and effort. We distill it down to a quick 5 minute read to help you make better money decisions.

Lost Decade to ComeThe World Bank is warning that the U.S. may experience a lost decade of economic growth due to the pandemic (or the reaction to it, more accurately) and the war in Ukraine. They see GDP growth falling to a 30 year low to 2.2% from 3.5% from now until 2030.

History Lesson - Japan's Lost DecadeJapan's lost decade refers to a period of economic stagnation and low growth that lasted from the early 1990s to the early 2000s. The term "lost decade" is often used to describe this period because it was marked by a sharp decline in economic growth and asset prices, as well as rising unemployment and deflation.

The lost decade was caused in part by the bursting of a financial and real estate bubble that had fueled rapid economic growth in the 1980s. When the bubble burst in the early 1990s, many Japanese banks and corporations were left with large amounts of bad debt, which they were slow to write off.

As a result, the Japanese economy stagnated, and the government implemented various economic stimulus measures and monetary policies in an attempt to revive growth. However, these measures were only partially successful, and Japan struggled to escape the cycle of low growth, deflation, and high public debt.

The lost decade had significant social and political consequences in Japan, including rising income inequality, an aging population, and a sense of disillusionment among younger generations who had grown up with high expectations for economic success.

Banking CrisisCharles Schwab is the latest brokerage to have issues as customers have moved cash out and they site on $29 billion in unrealized losses due to buying long-dated bonds that have severely decreased in value as the Fed has raised interest rates at the fastest rate in modern times, from last November to now. This is the same issue that caused the collapse of Silicon Valley Bank.

UK Banking is Solid - They SayBank of England governor Andrew Bailey says that investors are testing the system and looking for points of weakness, but the system is very strong.

Yikes! Bank run stats$42 billion was pulled from Silicon Valley Bank on March 9th, the day everything started to unravel. However, it was just reported that nearly $100 billion was requested to be withdrawn on March 10th. That $142 billion total was 81% of SVB's deposits of $175 billion. No wonder they collapsed!

Survey says! Chance of Recession at 60%Goldman Sachs increased it's probability to 35% resulting from a pending credit crunch thanks to the banking crisis. The consensus is at 60%.

However, Consumer Confidence Inching Up as Fun is CancelledThe Consumer Confidence Index rose to 104.2 in March, up from 103.4 in February against expectations of 101. Respondents in the survey said they expect to see a drop in spending for gambling, entertainment and travel.

U.S Now #1 Oil Supplier to the EURussia used to be #1 and now the U.S. supplies over 18% of the EU's crude. It used to be 31% Russia and 13% U.S. The U.S. is also the second largest supplier of gas at 20%, right behind Norway.The conspiracy theorists conjecture that the U.S. blew up the Nordstream Pipeline so the EU would be forced to buy U.S. natural gas. We've seen many of the conspiracies turn out to be true. Will this one? 

France Having a MomentParis has seen riots on recent weeks as President Macron signed into a law an increase in the retirement age from 62 to 64. Needless to say, people were not happy.Today, authorities raiding the 5 largest banks - Société Generale, BNP Paribas, and HSBC. They are being accused of tax fraud and money laundering and face $1 billion in penalties. 

Crypto - Binance Sued by CFTCThe Commodities Futures Trading Corporation has sued Binance, the largest crypto exchange in the world, saying they broke laws by allowing US investors to trade derivatives and avoiding registration requirements.

Crypto InflowsDigital investment products broke 6 straight weeks of outflows with the largest inflows since July 2022 at $160 million.

Belts Tighten at MetaThe days of just sort of showing up for work and doing the minimum between games of ping pong and massages at tech companies like Meta seem to be at an end. They announced they'll resume performance reviews twice a year, rather than only once a year.

Alibaba SplitsThe company will split into 6 different companies allowing more flexibility for each one in fund raising and possible IPOs. The  company said the move is "designed to unlock shareholder value and foster market competitiveness."

The stock is down $600 billion since fall of 2020 thanks to Chinese government crackdowns and regulations. Also, founder Jack Ma returned to China after being away for a year.

Be a Better Investor

Take Action The majority of Americans now have a side gig, trying to earn extra money. Here are 5 ways to earn extra income.

1. Drive for a ride-sharing service: Sign up to drive for services like Uber or Lyft.

2. Become an affiliate marketer: Promote products and services online and earn a commission for every sale made through your affiliate link.

3. Start a blog or podcast: Share your thoughts and ideas online and monetize your content through advertising, sponsorships, or affiliate marketing.

4. Invest in stocks: Start investing in the stock market through platforms like Robinhood, E-Trade, or TD Ameritrade.

5. Rent out your car: List your car on car-sharing platforms like Turo or Getaround.

Legal StuffNothing in this newsletter is financial advice. Always do your own research and think for yourself.