Jenny Craig announced it will be liquidating its US operations after experiencing cash flow pressures. The weight loss program was effective during its life with one study finding that overweight people enrolled in Jenny Craig had lost 4.9% more after 12 months than subjects in a control group. But that is nothing compared to the PE firm that owns the company who have managed to lose 100%.

The lowdown

• 🍔 Weight loss management company Jenny Craig to liquidate its US operations.

• 💰 Berkshire Hathaway announces $35.5 billion profit and holds annual meeting.

• 😰 US Treasury officials warn of economic chaos if debt ceiling not lifted.

Flex your finance muscle

Quantitative tightening

Quantitative tightening (QT) is a monetary policy tool used by central banks to reduce the amount of money circulating in the economy and (hopefully) slow down inflation. It is the opposite of quantitative easing (QE), which involves the central bank purchasing financial assets, such as bonds or mortgage-backed securities, to inject more money into the economy and stimulate growth.

QT, on the other hand, involves the central bank selling these financial assets or letting them mature without reinvesting the proceeds, effectively reducing the size of its balance sheet. QT removes liquidity from the financial system with the goals of reducing inflationary pressures and maintaining price stability. The less liquidity, the less you can borrow, the less you spend and the less pressure there is on prices (unless greedflation is to blame?).

Read more in this explainer from the Economist ($).

Featured stories

Bain Capital raising $4 billion for a special situations fund

Bain Capital foresees pain ahead for the global economy. The private investment firm is looking to raise $4 billion for a new global special situations fund, aiming to acquire distressed investments across various asset classes.

Distressed funds have increased fundraising efforts in recent years, anticipating a downturn after an extended period of economic expansion. Bain Capital currently has $16 billion of assets under management, as part of its special situations strategy.

Howard Marks of the infamous vulture fund Oaktree Capital has also said that he is ready to go bargain hunting after more than a decade of good times. “The worst of loans are made at the best of times,” he said. Oaktree and Bain are hoping that holds true.

The content we're consuming today

• CNBC: Here’s a full recap of everything Warren Buffett and Charlie Munger said at Berkshire’s annual meeting.

• The White House: The Potential Economic Impacts of Various Debt Ceiling Scenarios.

• Money Talks from the Economist podcast: A business podcast on the business of podcasts.

Off-balance sheet items

• Last week I recommended a video from Joe Pera that sets you up for the perfect night’s sleep. Someone has since informed me that Joe has now released a podcast called ‘Drifting off’ with the same purpose. Be sure to use your Spotify sleep timer.

The bottom line