Administration lying about the health of the economy could wind up exacerbating any financial crisis that we have in the near future. However, there is something far more important that people aren't talking about: the Obama administration's attempts to redefine the word "recession": a futile effort to pull the wool over an American public that is growing increasingly suspect both Biden and Yellen's competence to be overseeing the the country, and the economy.
The Fed has hiked rates so quickly that the economy still has yet to catch up
- Over the next quarter or two, we're going to see the real effects of the 2% worth of recent rate hikes play out in the economy
- Personal savings rate has collapsed to 5.1%, its lowest since August 2008
- The more you tell people that everything is fine when it is not, the more surprised they are going to be when markets start to panic
- If the Fed decides to hold its nerve and doesn't begin discussing a pivot, we could be in for a repeat of December 2018's market sell off
Bottom Line
- In terms of calibrating expectations for the market going forward, this is an egregious sin.
https://www.zerohedge.com/markets/lying-about-economy-will-only-make-coming-crash-worse
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