Bloomberg is in the spotlight for an article published Saturday that suggested American people should spend more and borrow money. The piece was ridiculed on Twitter by Sen. Ted Cruz’s advisor Omni Ceren and by other users on the social media platform.
Q3 2021 hedge fund letters, conferences and more
Bloomberg Gaffe
An article titled “For Americans Shocked by Inflation, Argentines Have Some Advice,” written by reporters Ignacio Olivera Doll and Patrick Gillespie, incensed a set of Twitter users after suggesting that people should spend their paycheck straightaway on food and other family basket products to counter inflation.
Citing the critical consumer prices situation in Argentina, the article read: “In a high-inflation economy, money that sits in the bank is losing value. Each day, those $100 on deposit buy a little bit less.”
“As a result, many Argentines spend their paychecks as soon as they receive them, carting away weeks’ worth of groceries in a single shopping trip, even if some of it —excess meat, chicken, fish— will sit in the freezer for months.”
Olivera and Gillespie also added, “And don’t hesitate to borrow money to finance some of those big purchases. If you can get a loan at a rate below inflation —something that’s possible for many Americans today— go for it. Inflation will make it easier to repay the loan in coming months and years.”
Reactions
One of the highlight reactions on Twitter was that of Omri Ceren, advisor to Sen. Ted Cruz, who said: “Bloomberg next week –‘Some of the advice on how to cope with rising inflation includes: Stop using cash and switch to bartering.’”
“America is turning into the Weimar Republic with financial magazines advising people to spend their paychecks as soon as they get paid. Hyperinflation is coming,” journalist Ian Miles Cheong wrote.
Carol Roth, a former investment banker, quoted a line from a deleted World Economic Forum video writing “You will own nothing and you will be happy,” Fox Business reports.
Cory Morgan, blogger, and columnist for the Western Standard in Canada also took to Twitter and posted: “Brilliant! Toss away your money before it can devalue further! Where would we be without MSM advice?”
The reactions come at a time when inflation in November reached 6.8% year-on-year, the fastest increase in nearly 40 years. The issue has triggered a social media conversation, with sets of opinion leaders and personalities either ignoring or underlining its importance.
