Market predicts Great Recession coming soon.
7 replies (most recent on top)
@2rag, of course higher rates can trigger a recession. We raise them specifically to cool the economy. That's like those brainiacs who claim an inverted yield curve is some kind of crystal ball to see a recession is in the future when it's caused by raising rates to cool the economy. That's like saying your car is going to crash when you put on the brakes because every crash involves deceleration.
Markets don’t predict recessions but that doesn’t mean OP is wrong. If rates climb too high, it can trigger a recession. Between supply chain issues, lockdowns in China (now), chip shortages, war in Ukraine, our offshoring and increased automation, inflation, housing supply shortages, etc., this is a possibility. The fact that the markets haven’t tanked majorly since 2020 is a miracle. The only reason it didn’t? The Cares Act and the rich didn’t lose their money during covid. That’s what lead investors to not let people freak out and keep them in check.
Wimps need to read up on Jimmeh Carter and his stagflation. You wouldn’t have been able to make it through the 1970s. Economists had never seen anything like it. One termer.
That sentence in itself shows you don't know what you're talking about
With the pandemic lasting as long as it is, I am not surprised.
More job losses coming. 👩💻
Um, markets don't predict anything.
With this inflation even if a flat market is a sign of recession. If the market actually does tank it's going to be a real kick in the jibblets.