🍋 Boomer Spending Spree

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Good Morning! Happy St. Patrick’s Day. First Republic sent shockwaves throughout the market when it dropped 30% yesterday to start the trading day. But Wall Street ultimately came to the struggling bank’s help with a $30 billion rescue package. Credit Suisse also received a $54 billion lifeline from the Swiss National Bank.

The European Central Bank surprised investors by hiking rates even despite the banking turmoil. PwC signed a deal to give its lawyers access to ChatGPT for due diligence assignments and analyzing contracts. And #15 seed Princeton stunned the basketball with its upset over #2 Arizona in the first round of the NCAA Tournament yesterday.

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1. Story of the Day: Boomer Spending Spree

The spending surge of 2023 has left economists scratching their heads, but it seems the culprits may be closer to home than we thought.

Retirees and/or baby boomers, notorious for their love of luxury and leisure, are taking a big slice of the pie. With an 8.7% cost-of-living increase in Social Security benefits, they're splurging on everything from golf clubs to grandkids.

And it's showing up in the bank's card spending data, with households receiving those payments spending faster than those that aren't. But the party may be winding down, as early February figures show a cooling trend.

Boomers are spending more on services, reflecting their pent-up desire for travel and leisure activities. And with the recent decline in inflation, the rise in social security benefits will have even more spending power.

Takeaway: While younger generations saw a boost in spending during the pandemic, older consumers on fixed incomes lagged behind. But now, with pandemic-era stimulus checks and tax credits fading away, younger generations are slowing down their spending while older consumers are making up for lost time.

2. Markets Rundown

Stocks rallied after First Reserve secured a rescue.

Movers & Shakers

• (+) First Republic ($FRC) +10% after its reported $30B rescue package.

• (+) Snap, Inc.($SNAP) +7% on a report the U.S. may ban TikTok.

• (–) LifePerson ($LPSN) -58% after the AI company’s losses were bigger than expected.

Private Dealmaking

• Pornhub acquired by Ethical Capital Partners

• Stripe, a payments processing giant, raised $6.5 billion

• Alimentation Couche-Tard, a Canadian convenience store operator, bought a portfolio of gas stations from TotalEnergies for $3.3 billion

• Providence Equity Partners bought Hyve Group, a British events organizer, for $582 million 

• Lenskart, an online eyewear retailer, raised $500 million

• Mediar Therapeutics, a biotech focused on fibrosis, raised $105 million

• Pagos, a payment intelligence infrastructure startup, raised $34 million

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3. Top Reads

• Why an 100k salary in NYC feels like 36k (BB)

• Bailouts get a bad rap (YF)

• Crypto infects banks, banks return the favor (BB)

• Inside the $30B rescue of First Republic (YF)

• Bitcoin rises 14% in 7-day span as US banking system wobbles (TC)

• Shards of SBV are for sale, but nobody is buying yet (NYT)

• Peter Thiel had $50M in SVB when it shut down (Fox)

• Finance YouTubers sued over promotion of FTX (TC)

• The solid balance sheets of Big Tech firms like Meta make them safe (CNBC)

• Banks sought record Fed liquidity in wake of SVB collapse (Reuters)

4. Shortform Book of the Day: STFU

Read More Books, Faster - Shortform offers super-detailed guides to 1000+ books in categories like finance, careers, self-improvement, and more. Their comprehensive coverage and deep insights will give you the world's greatest ideas without the fluff.

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Our noisy world has trained us to think that those who get in the last word win, when in fact it’s those who know how to stay silent who really hold the power.

STFU is a book that unlocks this power and will change your life, freeing you to focus on what matters.

Lyons combines leading behavioral science with actionable advice on how to communicate with intent, think critically, and open your mind and ears to the world around you.

Talk less, get more. That’s what STFU is all about.

Prescriptive, informative, and addictively readable, STFU gives you the tools to become your better self, whether that’s in the office, at home, online, or in your most treasured relationships.

Because, after all, what you say is who you are.

So take a deep breath, turn the page, and quietly change your life.

“I’m telling you this as a friend, so please don’t take it the wrong way. But I want you to shut the f*ck up. Not for my sake. For yours.”

5. Short Squeez Picks

• Financebuzz’s team of credit card experts has put together a comprehensive list of the top cards that offer extended periods of 0% interest rates. Check out the list here

• Hear the song David Guetta wrote using AI

• Ten charts I can’t stop thinking about

• Little ways the world works

• 6 questions to ask when frustrated with your team

• How Slack’s new ChatGPT bot will talk to your colleagues for you

6. Daily Visual: Change in Downloads of Financial Apps

Daily, March 1-14

_{Source: Axios}

7. Daily Acumen

If you're looking to achieve long-term success in your personal or professional life, it's important to understand the concept of playing the long game.

This means focusing on your long-term goals and strategies instead of being tempted by short-term gains or instant gratification.

To begin playing the long game, you should start by setting clear, long-term goals for yourself. These goals should be specific, measurable, and achievable, with a timeline in place for tracking progress.

Once you have established your goals, you should take a strategic approach to decision-making, considering how each choice may impact your long-term plans.

It's also important to avoid distractions and temptations that may derail your progress towards your long-term goals. This may mean saying "no" to certain opportunities or making sacrifices in the short term to achieve long-term success.

Remember that setbacks and failures are a natural part of any journey, and it's important to learn from these experiences and build resilience. Use setbacks as an opportunity to reflect on your goals and strategies and make adjustments as necessary.

Overall, playing the long game requires patience, perseverance, and a strategic mindset. By focusing on your long-term goals and staying committed to your strategies, you can achieve meaningful success in all areas of your life.

8. Memes of the Day

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