Tom & Dylan are back for another session of Truth Or Skepticism! In this segment, they discuss the three main pain points of the financial markets today - Financial literacy, risk aversion, and debt. Tune in to hear what Tom & Dylan think of the topics, and how they propose to resolve the issues within!

What’s The Deal With Financial Literacy Education?

I’m nervous about the current definition (of financial literacy), which is some watered down version of being risk averse
— Tom Sosnoff

Tom explains that there is a culture of risk aversion these days, which is why people have no interest in learning about finance and taking risk. Culturally we are trained to give our money to professionals and forget about it, which is what we aim to change at tastytrade & dough. Dylan defines what he thinks financial literacy really means, and what everyone else thinks financial literacy means as well.

I actually look at money as potential energy. I don’t look at money as an object so much as I look at it as potential
— Dylan Ratigan

What Does It Mean To Understand Risk?

 

To generate a certain level of success, you have to be able to generate a certain level of risk.
— Tom Sosnoff

Tom & Dylan discuss what it really means to understand risk, and discuss the cloud of fear that hovers around the word risk. Tom explains that there is a record low number of startups that have new vision relative to the S&P, and that is very scary for him. Dylan also states that there are policies in place that make it hard for people to branch out and manage their own business relations.

There is also a tax code & a central banking policy, both of which incentivize asset accumulation in pre-existing asset pools.
— Dylan Ratigan

What’s With The Government Policymaking In Finance?

 

There is no amount of assets the federal reserve won’t buy.
— Dylan Ratigan, quoting Ben Bernanke

Tom & Dylan dig into the complexities of financial markets in this portion of the segment, and explain how the federal reserve has “played god” in a sense. Tom hates the fact that there is a notion of tick size increasing, which would only hurt retail investors. Dylan explains the relationship between bonds & equities, and Tom states that the only thing that can solve the problem overnight is a market normalization.

If Bernanke did NOTHING the market would be in the exact same spot.
— Tom Sosnoff

This is only a snippet of the segment, so be sure to watch the entire episode below!

To see earlier episodes of Truth or Skepticism with Dylan Ratigan, you can check them out here!