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This is just a market correction. But there's a much larger danger to the economy. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/
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This is just a market correction. But there's a much larger danger to the economy. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/
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| This is just a market correction. But there's a much larger danger to the economy. Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman Mike Norman Economics: https://mikenormaneconomics.blogspot.com/ |
BUILD BACK BETTER
Mike could you explain why when the fed does qe that it affects banks ratios and that slowdowns new lending? in theory either the qe cash os the previous qe us bonds should weight the same on banks assets right? is that also because we have a fractional reserve banking system? thanks
Banks are capital constrained. The reserve requirement is unnecessary. For example Canada does not have it.
You heard it 1st from Mike … the real danger is not the inflation itself but the idiots on the Hill with policy guns and half-baked knowledge
Brilliant assessment on bonds
I also believe US and European bond yields must converge, I believe soon
The recent downturn had different characteristics and dynamics than prior recessions. The unprecedented magnitude of the decline in employment and production, and its broad reach across the entire economy, warranted the designation of this recent episode as a recession, even though the downturn was briefer than earlier contractions
To determine if an economic episode qualifies as a recession, we must weigh the depth of the contraction, its duration, and whether economic activity declined broadly across the economy (known as the diffusion of the downturn)
Though the drop featured a staggering 31.4% GDP plunge in the second quarter of the pandemic-scarred year, it also saw a massive snapback the following period, with previously unheard of policy stimulus boosting output by 33.4%
The contraction actually lasted just two months, from February 2020 to April 2020, deepest yet the shortest recession
What were the vacccinated thinking, that they just jab you twice and u are free to go????. Get your butts ready cuz they are gonna jab you 50 times a year until you grow horns and horseshoes???
So don’t buy the dip yet!
Hey Mike, post Clinton surplus, the private sector went into a heavy debt cycle…do you see that happening again?
If there is another federal government surplus then that is the only possible outcome. If you make the Private Sector poorer by pulling back government spending then the private sector will also spend less. The Paradox of Thrift.
@Dupre of Trinsic in the 90s, they did not spend less, they just borrowed more. Private debt filled the hole left behind by the gov surplus. Private debt has to be paid back with interest. When it got too much to carry, the whole bull market shut down.
Surely deflation is the problem now? The yield has been down for so long now. I think that's what the market is starting to be worried about.. Can you talk about that Mike?
It's always Congress that is our problem, or worry, our destruction. I'd like to put them all at the bottom of the ocean. We'd be so much better off as a country without all of these clowns.
Mike, last year at this time the net-transfer to the private sector was $2.311 T. At the moment, the net-transfer is $2.346 T. That is $35B more. Not a lot more, but it is not a reduction, like you keep saying.
man i love when mike is wrong, entertaining af
I disagree with you Mike. The idea that inflation has no effect on the stock market is certainly incorrect. A healthy economy must keep inflation under control.