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The global economy is teetering, so what happens next?

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For years, the US economy has been booming. But now, it’s starting to look like that party might be coming to an end.

The reason? The Federal Reserve has been tightening monetary policy, and asset prices are plunging as a result.

Stocks Have Plunged $12 Trillion Since January

The first casualty of the Fed’s policy change has been the stock market. As measured by the Wilshire 5000 all-cap index, stocks have shed $12 trillion of market capitalisation since January. That’s a loss of nearly 30% from the peak. And it shows no signs of stopping any time soon.

Bonds Have Lost 14% of Their Value

Bonds have also taken a beating. Over the past year, bonds have lost 14% of their value, wiping out $7 trillion in market capitalisation. And with interest rates rising, there’s no end in sight for this sell-off either.

Cryptocurrencies Have Vanished $2 Trillion in Market Cap

Cryptocurrencies have been hit particularly hard. After surging to record highs last year, crypto prices have slumped back down to Earth. In the past year, cryptocurrency prices have fallen by more than 50%. That’s wiped out $2 trillion in market capitalisation. And there’s no telling how far prices could fall if the sell-off continues.

House Prices Are Falling Too

Finally, even house prices are starting to come down. They don’t adjust as quickly as other asset prices, but they’re still falling. Mortgage rates have risen to 7%, up from 3% last year. That’s making it harder for buyers to afford homes. As a result, prices are starting to come down.

The US economy has been booming for years now. But that party might be coming to an end—and the reason is the Federal Reserve. By tightening monetary policy, the Fed has sent asset prices plunging and set off a chain reaction that could eventually lead to a recession. So what does this mean for you? Here’s what you need to know…

Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.

Business

Billionaire boss pays for staff holiday to Disney

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The happiest place on earth became home to the happiest staff on earth after a boss paid for a company break

Ken Griffin is the billionaire boss who booked out an entire Disney World for his staff to cap off a successful year.

Mr Griffin is the Chief Executive at Citadel LLC—a multinational hedge fund and financial services company.

He paid for his staff to visit Walt Disney World in Florida for an all-inclusive weekend away.

“We have built the most extraordinary team not only in our history, but also in the history of finance,” he said.

Around 10,000 people attended the three-day celebrations, including families of Griffin’s staff.

He paid for airfares, hotels, parking tickets, meals and entry into the happiest place on earth.

According to The New York Post, the mega-rich boss said the company has lot to look forward to.

“We have an incredible future ahead of us—and I look forward to the chapters yet to be written.”

A range of musical acts also performed, including Coldplay, Carly Rae Jepsen and DJ Diplo, as part of the weekend of celebrations.

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How did Musk lose his title as the world’s richest person?

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Elon Musk has briefly lost his title as the world’s richest person

This is all following a steep drop in the value of his stake in Tesla and his $44 billion purchase of Twitter.

Bernard Arnault, the CEO of LVMH, which includes luxury brands such as Louis Vuitton, briefly took over the title, with a personal wealth of $185 billion.

Musk has held the top position since late 2021, but has seen his wealth drop, as Tesla investors are worried that he is focused more on Twitter than the electric vehicle company.

Tesla has lost nearly half of its market value and Musk’s value has fallen approximately $70 billion since he made a bid for Twitter back in April.

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Europe plans to bar Meta from using your personal data 

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Europe plans

Europe plans to bar Meta from using your personal data in major ruling

Meta will require permission from its users to serve advertisements based on their personal data, if a confidential EU privacy body has its way.

The European Data Protection Board (EDPB) has issued the agency that overseas Meta one month to issue the ruling.

This is yet another blow for Meta. The company makes around 98% of its revenue from advertising, equating to $27.16 billion in the third quarter of 2022 alone.

Meta attracts advertisers due to its ability to specifically target users based on their geographical location, age, and interests. But the company has been forced to reduce a number of its targeting options recently.

This is to avoid advertisers from targeting users based on sexual orientation, health, religion, and a number of other personal characteristics.

But this recent move from the EDPB is just another blow for the social media giant. The company also having to weather Apple’s iOS 14 update that allowed users to opt out of off app tracking, further reducing the ability for advertisers to specifically target individuals with ads.

Providing users with further control over their personal data is another evolution in the data rights discussion. The issues has been raised in various articles and documentaries, including The Great Hack

If passed, Meta users will once again be faced with the million-dollar question. Would they prefer tailored ads or ads that may not be relevant?

While regulations around data privacy will continue to evolve, advertising will never cease. This is particularly true for Meta, which relies on advertising revenue for its existence.

By Dr Karen Sutherland, University of the Sunshine Coast and Dharana Digital 

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