Reopening: Markets vs Our Economy

As we enter the month of March, we also mark a full year of COVID-19 related restrictions on businesses, schools, and social functions. Somehow it feels like time has dragged on and yet simultaneously flown by.

“It would be so nice if something made sense for a change”
- Alice In Wonderland

I thought the above quote was quite fitting for today’s environment, but I was going between that and another appropriate line “Sometimes I've believed as many as six impossible things before breakfast”. It most certainly feels like the world has collectively begun believing a multitude of impossible things.

Afterall, it is hard not to think the world has gone mad when a ‘cryptocurrency’ with a dog as a mascot, that was literally made as a joke, increases in value by over 2,000% in a matter of a couple months. Its total value at the peak reached over $10 Billion….It is still valued at over $6 Billion at the time of this writing.

Similarly, you have collectibles such as trading cards where some are exchanging hands at values more than 20 times higher than they went for just a year earlier1. A Basketball card of Luka Doncic of the Dallas Mavericks recently sold for $4.6 Million. This set a record for the most expensive basketball card ever sold by more than double the previous record2. The price of that card represented more than half the annual salary the Dallas Mavericks pay Luka Doncic to actually play for their team.

I could go on and on about the seeming absurdity in the collectible space that is brimming with examples of artificial scarcity. Although, this may simply be an inevitable symptom of the extremes which inequality has reached more than anything.