Howard Marks on Interest Rate Outlook, Bitcoin, AI and Government Debt

• Howard Marks says interest rates won’t go back to zero anytime soon.
• Billionaire investors warn that the ballooning U.S. federal debt could cause problems in the future.
• Marks says AI will not replace the best investors, and bank failures have shed light on Bitcoin.

Howard Marks says interest rates won’t go back to zero anytime soon and artificial intelligence won’t steal the best investors.

The billionaire investor and co-founder of Oaktree Capital Management has warned of ballooning government debt, suggested Bitcoin has uses, and asked the Federal Reserve to help the economy. asked for as little intervention as possible. He spoke on a recent episode of the “We Study Billionaires” podcast.

Below are Marks’ eight best quotes from the interview, lightly edited for length and clarity.

1. “Lower interest rates account for the majority of all money created in the last 45 years.” He welcomed it as a big change.

2. “Rates are high today to fight inflation. I don’t think they will stay high. But they have come down a lot and are very low.”

3. “The thought of having a credit card that you don’t have to pay off is a waste of money.” I was warned that it was likely.)

4. “AI, just like passive investments and machine learning, and sometimes more, will knock out everyone who does not add value. Producers need to be paid well, but I hope there are still a few people who can do what machines can’t.”

5. “Can an AI-enabled computer sit with a CEO and figure out which one is Steve Jobs? Can it look at five business plans and figure out which one is Amazon?” I don’t think so. This is art. Shape.”

6. “There are those who believe that the weakness of banks indicates the strength of Bitcoin in the event of a banking crisis, such as Silicon Valley Bank and some other banks. It’s an anti-bank play on the point: some coins seem to have valid uses, and Bitcoin seems to be leading the way so far.”

7. “Humility is really important. Especially in the market, we are all humble. In a field where there is randomness and uncertainty, where qualitative and subjective things matter, humility is important. Whoever does not forgive, fall.”

8. “People used to talk about the factory of the future. One man and one dog. It was the dog’s job to keep the man out of the machine. Feed the dog.” It was also a human job to do. ”