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New York Post: America is likely facing a deeper-than-normal recession
Posted on 5/19/22 at 10:24 am
Posted on 5/19/22 at 10:24 am
Prepare for buzzwords like "weird" or "unpredictable" to be used by the media when describing the economic situation. Those are less scary substitutes for the word "recession".
Monetary policymakers are going with more rate hikes. But they've been wrong about inflation earlier this year, and more people think that they are engineering a situation where a hard and painful landing will occur in 2022 - 2023.
Monetary policymakers are going with more rate hikes. But they've been wrong about inflation earlier this year, and more people think that they are engineering a situation where a hard and painful landing will occur in 2022 - 2023.
quote:
America is likely facing a deeper-than-normal recession
NYPOST
quote:
Among the reasons to fear a deeper-than-normal recession is that monetary-policy tightening is causing the equity and credit market bubbles to burst. Since the start of the year, not only has the Federal Reserve’s abrupt policy shift wiped out almost 20% of the stock market’s value; it has also wiped out nearly 20% in the bond market’s value and close to 50% in the value of exotic markets like bitcoin.
The combined evaporation of some $12 trillion, or 50% of gross domestic product, in household wealth since the start of the year must be expected to cool consumer demand in time. Households will begin to stress about their reduced 401(k)s, which will make them want to rebuild their savings. According to the Federal Reserve, for every sustained $1 loss in household wealth, consumers tend to reduce their spending by 4 cents.
This means that, although consumer spending has held up well to date, because of their financial-market losses, consumers might soon be expected to reduce spending by as much as 2% of GDP. This is the last thing we need when consumers are already cutting back because of soaring gasoline and food prices and because their wages are being eroded by high inflation.
Another cause for concern is that the Fed’s tightening has led to an abrupt jump in the 30-year mortgage rate from around 3% at the year’s start to 5.5% at present. This has reduced the affordability of housing by 25%. That in turn is already leading to a marked cooling in housing demand.
quote:
Last year, Fed Chairman Jerome Powell kept assuring us that the rise in inflation was transitory — only to find that inflation surged to a 40-year high. Today, he is assuring us that he can reduce sky-high inflation by engineering a soft economic landing even though all the clues are pointing in the opposite direction.
Posted on 5/19/22 at 10:29 am to goofball
Feel like we didn't need a whole article to explain how people will cut their spending when they realize that their investments have cratered by 15-20% in a short period of time.
Posted on 5/19/22 at 10:33 am to goofball
NYP is now captain obvious?
Posted on 5/19/22 at 11:13 am to kywildcatfanone
shite, at least the NY Post, a tabloid rag of all tabloid rags, will report it. You won’t get more honest coverage in another mainstream media outlet these days.
This post was edited on 5/19/22 at 11:13 am
Posted on 5/19/22 at 12:01 pm to goofball
They are reprograming the gas pumps. They aren't designed for anything over $9.99 a gallon.
Posted on 5/19/22 at 12:02 pm to goofball
Lol, a tabloid. They also told us Hunter's laptop was real and
*checks earpiece*
Wait...are you sure?
*checks earpiece again*
Uh oh.
*checks earpiece*
Wait...are you sure?
*checks earpiece again*
Uh oh.
Posted on 5/19/22 at 12:03 pm to goofball
You trumptards loved to be scared by faux news. The economy is perfectly fine and there isn't any real inflation or recession.
-mmmmbeeer
-mmmmbeeer
Posted on 5/19/22 at 12:09 pm to goofball
is this a transitory recession? will we pretend it’s not happening for a quarter or two? Can we possible blame Putin or greedy corporations for the recession? would sending a couple billion more to Ukraine help?
Posted on 5/19/22 at 12:11 pm to goofball
That sucks and all but if it's the price we have to pay not to see Trump's tweets then so be it.
Posted on 5/19/22 at 12:12 pm to Klark Kent
quote:
is this a transitory recession? will we pretend it’s not happening for a quarter or two? Can we possible blame Putin or greedy corporations for the recession? would sending a couple billion more to Ukraine help?
No serious economists are calling this a recession, that’s disinformation.
-Psaki
Posted on 5/19/22 at 12:28 pm to bad93ex
quote:
No serious economists are calling this a recession, that’s disinformation.
-Psaki
But if it's a recession, it would be a good thing.
-CNN
Posted on 5/19/22 at 12:31 pm to goofball
Ray Charles could see this one coming
Posted on 5/19/22 at 12:36 pm to goofball
quote:
This means that, although consumer spending has held up well to date, because of their financial-market losses, consumers might soon be expected to reduce spending by as much as 2% of GDP
I hope this isn't overlooked.
Not because it's painful but because WE all created this. We earn and then spend on the most meaningless trinkets. It's such a rabbit hole topic.
Posted on 5/19/22 at 12:38 pm to goofball
It’s being dubbed the potato famine.
Posted on 5/19/22 at 12:45 pm to Sao
quote:
I hope this isn't overlooked. Not because it's painful but because WE all created this. We earn and then spend on the most meaningless trinkets. It's such a rabbit hole topic.
What did We all create, specifically?
Posted on 5/19/22 at 12:48 pm to LSUtoBOOT
quote:
It’s being dubbed the potato famine.
Posted on 5/19/22 at 12:48 pm to goofball
quote:
America is likely facing a deeper-than-normal recession
That's code for an almost economic depression
Posted on 5/19/22 at 12:50 pm to member12
quote:
But if it's a recession, it would be a good thing.
-CNN
A mostly prosperous recession
Posted on 5/19/22 at 12:53 pm to goofball
quote:
America is likely facing a deeper-than-normal recession
Well since the Fed and policy makers in DC have orchestrated relatively few brief market downturns since the Carter years, several generations have not felt the economic pain of a true recession or depression.
Posted on 5/19/22 at 2:00 pm to Tarps99
quote:
several generations have not felt the economic pain of a true recession or depression.
Most people alive in 2008-2012 felt it.
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