The collapse of FTX, layoffs at Meta, and an improving CPI are this week’s big (finance) stories.

Crypto

• What is going on in the crypto world today with the run on FTX and apparent insolvency has been compared to Lehman’s failure in 2008, as well as to the (bank) Panic of 1907. In 1907, JP Morgan came to the rescue. From 1913 on, there was a central bank to serve that purpose. There is no entity to help out here. Binance might have done it but took a closer look and decided not to bail out FTX. James Mackintosh (WSJ Streetwise-subscription may be required) makes this 1907 analogy.
• For a fairly complete description of FTX and its related entitites FTX.US and Alameda, read this post by independent journalist Amy Castor. It was written before Binance bailed (CNBC), but includes lots of other related crypto industry details.
• Here is the thorough description of the situation from the Wall Street Journal (subscription may be required.)
• CNBC interviewed SEC chair Gary Gensler on the fallout from this.
• Regulators move to freeze FTX assets as the company looks for $9.4 billion. (Reuters) And this morning, FTX filed for bankruptcy protection and Sam Bankman-Fried resigned. (yahoo finance/reuters)

Economics

• CPI came in lower than expected today, as 0.4% month over month, (0.3% for core).   News sent stocks flying and 10-year Treasury dropped below a 4% yield. Yahoo Finance does a good job covering all the details and market reaction. AP is an option as well.

Investing

• The better than expected inflation report led the markets to their largest gain in two years. (CNBC) The market doesn’t seem to believe that the Fed will “stay the course”(when they repeatedly say they will.) (Yahoo Finance)
• The rumors of Meta layoffs had been brewing for awhile and were made official on Wednesday, when 11,000 people (13% of the workforce) lost their jobs. (CNBC)
• Amazon is the first company to lose $1 trillion in market value. In July 2021, it was worth $1.9 trillion. On November 1, it dropped below $1 trillion. (Market Insider)

Of Interest to All

• Here are twelve Money Lessons from Warren Buffet and Charlie Munger. (Morningstar)

About the Author

Beth Tallman

Beth Tallman entered the working world armed with an MBA in finance and thoroughly enjoyed her first career working in manufacturing and telecommunications, including a stint overseas. She took advantage of an involuntary separation to try teaching high school math, something she had always dreamed of doing. When fate stepped in once again, Beth jumped on the opportunity to combine her passion for numbers, money, and education to develop curriculum and teach personal finance at Oberlin College. Beth now spends her time writing on personal finance and financial education, conducts student workshops, and develops finance curricula and educational content. She is also the Treasurer of Ohio Jump$tart Coalition for Personal Financial Literacy.