Buy now, pay dearly? (update)
Planet Money explores how buy now, pay later (BNPL) services work, why they have spread so quickly, and what risks they pose to consumers and the broader financial system. Through the story of college student Emilia Schmarzo and interviews with Federal Reserve researchers, the episode explains BNPL's business model, its appeal to merchants and younger shoppers, and the dangers of debt "stacking" when usage is not reported to credit bureaus. An update looks at how BNPL has expanded to everyday necessities, who is using it most, and how it may soon affect credit scores.
The remittance mystery
The episode investigates a puzzling surge in remittances flowing from the United States to several Central American and Caribbean countries, especially Honduras, despite heightened immigration enforcement and declining new immigration. Through interviews with a Honduran bank remittance manager, migrants, and economists, the reporters explore how fear of deportation, a looming remittance tax, and migrants' desire to build savings back home are driving this spike. They also examine how critical remittances are to economies like Honduras, the risks of over-dependence on this income, and the potential economic shock if these flows decline in the near future.
TIP758: Current Market Conditions & Investment Opportunities w/ Derek Pilecki
Host Clay Fink interviews hedge fund manager Derek Pilecki about his recent performance and how he is navigating current market conditions in the financial sector. Pilecki explains his process of targeting ideas with potential to double in three years, combining value investing with an awareness of momentum and technicals, and selectively using leverage at both the company and portfolio level. He discusses opportunities in regional and European banks, beaten-down fintech names, case studies in Robinhood and WEX, and his views on interest rate cuts, inflation, and the real estate market.