GM. This is the Generational, the building wealth newsletter that didn't take a single dollar of sponsorship from FTX.

Here's what we got for you today:

• Fed raises rates again, but not that bad?!

• Did housing cause bitcoin rise?

• Criminally underrated Twitter accounts

JPow Is On A Mission

The Federal Reserve announced another rate hike taking the U.S. to its highest rates since 2007.

And there's more to come in '23.

Jerome Powell, aka JPow, aka Daddy Big Bucks, has been pretty clear about the Fed's goals.

They are committed to getting the U.S. back to 2% inflation.

Last week's CPI (Consumer Price Index) came in at 7.1%, so basically not 2%.

But everyone was excited because the market thought it would come in at 7.3%.

So stocks rallied for a hot second.

And then Daddy Big Bucks dropped the hammer with a 50 bps increase and...

Our Take

Think of this as a cleansing of the system. With rates at or near zero percent for the last decade, markets got frothy and valuations across every asset class went through the roof.

This correction is long overdue, needed, and present a HUGE buying opportunity for long-term investors (which we are) to buy quality assets at discounted prices.

Stocks are liquid so they'll move faster but this will hit slower, illiquid or less liquid asset classes like real estate.

It already is.

Did Housing Cause Crypto Boom?

⚠️ This might be triggering ⚠️

UBS released a report making the claim that the lack of affordable housing has led to younger people YOLOing on speculative bets (crypto, meme stocks, etc.).

There's no doubt that housing has become incredibly frothy. But responsible for the rise in bitcoin?

Maybe there's another answer.

It might not be just housing that's become out of reach. It could be the economy as a whole.

Wages have not kept up while education, healthcare, and housing are all much more expensive today then when our parents were our age.

There's also a pretty direct correlation between interest rates and asset prices.

Rates go down, shitcoins go up.

The report is a worthwhile read. You can check it out here.

5 Underrated Twitter Accounts To Build Wealth

Build wealth and enjoy some good content by following these underrated accounts:

• @bentigg - Ben successfully exited an SMB he acquired and now shares business buying tips and how-to guides to create wealth.

• @coleruudjohnson - Cole is 24 and already an accomplished real estate investor and wholesaler who teaches others how to build their own systems to acquire off-market deals

• @tyannmarcink - Tyann is a short-term rental tycoon in the Missouri and the Ozarks and is an expert at hospitality design for aspiring Airbnb entrepreneurs

Quick Hits

• Hamptons homes now need permission from City Council to list on Airbnb

• SBA 7(a) loans might become available for neobanks and fintechs soon

Meme of the Day