Galaxy Digital CEO Michael Novogratz joins ‘Squawk Box’ to discuss the state of regional banks, whether there is contagion risk in the global banking system, and more. For access to live and exclusive video from CNBC subscribe to CNBC PRO:
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BREAKING: Recession News
LEARN MORE ABOUT: Bank Failures
REVEALED: Best Investment During Inflation
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Commodity and Oil Market is Telling You That We Are Heading Into a Recession: Galaxy Digital CEO
The state of the global economy has been uncertain in recent times, with a number of indicators suggesting that a recession may be on the horizon. One such indication is the state of the commodity and oil markets, which are often seen as reliable barometers of economic health. In a recent statement, the CEO of Galaxy Digital, Mike Novogratz, has highlighted the concerns surrounding these markets, suggesting that they are painting a gloomy picture for the overall global economy.
Commodities, which encompass a wide range of raw materials including oil, metals, and agricultural products, are vital components of the global economy. Demand for commodities is closely tied to economic growth, with an increase in demand indicating a healthy economy and vice versa. When the commodity market experiences a downturn, it is often seen as a warning sign that economic troubles lie ahead.
Oil is one of the most crucial commodities, often referred to as the lifeblood of the global economy. It is used in various sectors, including transportation, manufacturing, and energy generation. Therefore, fluctuations in the oil market can have far-reaching implications for the overall economic outlook. In recent months, the oil market has witnessed significant volatility, with prices plummeting due to a combination of demand shocks caused by the COVID-19 pandemic and a price war between major oil-producing countries. These factors have resulted in an oversupply of oil, leading to a sharp decline in prices.
According to Novogratz, the current state of the commodity and oil markets strongly indicates that a recession may be imminent. He argues that the decline in oil prices is indicative of weak global demand, suggesting that businesses are not operating at their full potential. This slowdown in economic activity can have a domino effect on various sectors and industries, ultimately leading to a recession.
The COVID-19 pandemic has played a significant role in exacerbating these economic concerns. Lockdown measures implemented by governments around the world have severely impacted economic activity, leading to a contraction in many sectors. The resulting decrease in demand for commodities has only added to the worries surrounding the state of the global economy.
However, it is important to note that some experts have warned against making hasty conclusions based solely on the state of the commodity and oil markets. While these markets can serve as early warning signs, they are not foolproof indicators of a recession. The true state of the economy is influenced by various factors, including fiscal and monetary policies, geopolitical tensions, and consumer confidence.
Nevertheless, the concerns highlighted by the CEO of Galaxy Digital underscore the need for policymakers and investors to closely monitor the commodity and oil markets. If these markets continue to exhibit signs of weakness, it may be time to prepare for a potential downturn in the global economy. Proactive measures can then be implemented to mitigate the impact of a recession, such as fiscal stimulus packages, monetary policy adjustments, and diversifying investment portfolios.
In conclusion, the state of the commodity and oil markets is sounding alarm bells for the global economy. The decline in oil prices and the overall weakness in commodity demand are concerning signs that a recession may be on the horizon. While these markets are not definitive indicators, they can serve as early warnings, prompting policymakers and investors to take necessary precautions. By closely monitoring these markets and implementing appropriate measures, we can work towards minimizing the impact of a potential recession.
Novogratz is bullish on Bitcoin.
That mesmerizes me that a 4.5% interest rate is crashing the economy. How have we been able to maintain a 2% or less inflation for so long (11yr) with such a low interest rate before (0.16% from Dec 2008 to 1.58% in Feb 2020 with a bump at 2.40% in 2019) ? These were the best years for low inflation and we were on continuous QE for 11 years (from $1.6T in Dec 2008 to $4T in Feb 2020). Does somebody have any explanation ?
Relax. Hold cash and real assets. Don't listen to the shameless plugging of the ultimate risk asset by the guy who is long in them.
Silver looks to be in overbought position…can we continue sell on rise…pl advise if you have any idea ?
Christmas massacre of 2018
Hard to trust the judgement of a guy who would make such stupid dress decision
Newsflash….. The recession has been here AWHILE.
Changing the definition doesn’t mean it isn’t true.
The Fed is a disaster… rates too low. QE too long. Inflation is transitory. Now a disaster starting from the hikes.
Market declines, soaring inflation, a significant increase in interest rates by the Fed, and rising Treasury yields all point to additional losses for portfolios this quarter. How can I profit from the present market turbulence? I'm still debating whether to sell my $125,000 ETF/Growth Stock portfolio.
Bunker Trades. Melissa is awesome.
Money backed up by gold
Markets are discounting every bad news, there is very very very little fear. This will make Powell even more hawkish.
Look at what the ECB did. They raised by .50bp, markets just shrugged it off! EU stocks are going up!
When our government forces each taxpayer to pay for ten immigrants it's much worse than a recession. It's top down slavery. It's the poor uniformly priced out of housing and buying food by extremely driven prostitutes who sell drugs and rob us.
Crypto has fallen because tradfi contagion temporarily depegged usdc?
The balls on the guy coming on CNBC after that disaster
CNBC always has the most sensational folks on air. It's part of the entertainment. You could watch the show every day for 15 years and hear a "it will crash tomorrow" spokesman a few times / week. What's funny is that despite the history of false predictions, some folks accept each new forecast as the real thing. When the time passes (days, weeks, months, quarter, etc) they move to the next "crash" person. LOL
On a contrary note, many are saying that a recession may have been avoided by the huge drop in oil prices.
Fed needs to blow the bubble bigger.
We want to give Big Bang a run for the money.
This newscaster, Mike,is going to create a problem that is not there. Why are people listening. No one needs Bitcoin. Stop this interview already.
What is baldy wearing?
Long BTC is not a smart move
Bidenomics at work.
To say the FED is going to pause because of bad management and careless investments by SVB is ridiculous! The FED is going to stay the course! Getting Inflation under control is more important than the stupidity and foolishness by SVB management!!!
One thing is for sure particularly in this weak market, there are several opportunities to generate excellent returns, but such intricate transactions can only be carried out by seasoned market professionals.
Dilemma: Hyperinflation vs Stagflation. Then totally collapse of the credit market.
.
I would like to start a poll; Which guests on CNBC get under your skin the most (for whatever reason) and are the biggest BSers ? Top 5 consideration for me Novogratz, Brad Gerstner, Michael Saylor, Chamath and Jason Calacanis. There is plenty more competition out there folks. Let's hear them.
Why does Novogratz always look like he is an elderly 12 year old child?
That David tepper in disguise
I'm in complete awe at how I went from living an average life to making over 63k per month. It's amazing. The financial markets are full with opportunities, but I've learned a lot over the past few years to doubt that. The key is knowing where to focus. Well appreciated, Rodger Michael Karl.
SVB's collapse hasn't made anything better. I feel sad that even though I am investing, I don't have the brain power to dig through how each company is doing, is this a good time to buy stocks or not, my reserve of $450K is laying waste to inflation and I don't know what to do at this point tbh, I need solid data on market trajectory
Mike starts every statement with and aggressive "listen"
now this is the guy with terra luna tattoo on his arm, and you ask him for opinion ! credible.
Ehhh it will pass away …good time to buy banks for long term dividents
free people, free market my ass…
He's just trying to sell crypto!