For the first time in history the economy is collapsing faster than the stock market. t.co/AkNgZatTHA
"The percentage of Americans who feel dissatisfied with their finances is at the highest level since the poll began in 1972"Bulls specialize in ignoring risk. pic.twitter.com/o994GJHCvQ
— Mac10 (@SuburbanDrone) June 7, 2022
Forget CPI: the week's most important data point is today's monthly consumer credit update. Last month we saw a blowout, record surge in credit card usage as consumers tapped out pic.twitter.com/FoZ5XE4JWI
— zerohedge (@zerohedge) June 7, 2022
Fed GDP tracker is hitting stall speed (.9%) for Q2 following -1.5% in Q1. Avg. EconoDunce expect 3% growth.t.co/H5bXfFwjco
Two negative quarters = recession.
CME double rate hike odds: 100% pic.twitter.com/oWHyb08eSF
— Mac10 (@SuburbanDrone) June 7, 2022
Consumer Discretionary stock Guidance revisions for 2Q22 are almost all downward revisions… pic.twitter.com/1XvTCqPJtw
— Weimar Silver Baron (@BankerWeimar) June 7, 2022
The amount of tightening next week 2x hikes + 1x QT will be more than what broke global markets in 2016 AND 2018. This time breadth is pre-collapsed.
Should be interesting. pic.twitter.com/ylKN84DR6X
— Mac10 (@SuburbanDrone) June 7, 2022
Pre-pandemic, the last time the U.S. flirted with recession was the summer of 2019. Back then the Fed cut rates three times. This year they are going to raise rates ten more times and double tighten the balance sheet.
This isn't about the stock market anymore. pic.twitter.com/PLjMb9k3zX
— Mac10 (@SuburbanDrone) June 7, 2022
Much talk about #economy 'soft-landing' (orange) – we are skeptical, but Global Investors are not yet positioned even for this … they seem outright 'Risk On' again (blue line) Whoa! pic.twitter.com/L1WpL9Pe93t.co/WB4EFas36q for regular data
— CrossBorder Capital (@crossbordercap) June 7, 2022
Are they preparing us for a 10% CPI report? t.co/WC02MSWala
— Wall Street Silver (@WallStreetSilv) June 7, 2022
World Bank slashes global growth forecast to 2.9%, warns of 'stagflation' risk t.co/WXcyUV9ZvE pic.twitter.com/y4pnAy4Yws
— Reuters (@Reuters) June 7, 2022
Global Growth Rates… pic.twitter.com/6iECacWqx6
— Charlie Bilello (@charliebilello) June 7, 2022
USA Housing: Would you say it's a good time to buy?
Real Price Index vs Buying Conditions pic.twitter.com/2wW671hnTW
— Wall Street Silver (@WallStreetSilv) June 7, 2022
One chart sums it all up.
What happens to consumer sentiment when ASSET prices go down?
We've never seen this before: pic.twitter.com/Hkoiq5c4CY
— Mac10 (@SuburbanDrone) June 7, 2022
#Recession coming?@RealInvAdvice @thedailyshot pic.twitter.com/8Uww5rhkBv
— Lance Roberts (@LanceRoberts) June 7, 2022
Diesel rose to a record $5.70, up by 74% from a year ago.
Most consumers don’t pay for diesel directly, but nearly all goods that consumers buy sooner or later end up on a truck, and shipping costs sooner or later 🚨 pic.twitter.com/0KFRy28isf
— Wall Street Silver (@WallStreetSilv) June 7, 2022
The consumer is on a borrowing spree as inflation erodes budgets, forcing difficult choices. Nobody *wants* to buy essential goods on high interest credit, but they will if they have to do so.
This can only last for so long before people max out and defaults ramp higher, though. t.co/Gu1zvv0w05
— Markets & Mayhem (@Mayhem4Markets) June 7, 2022
Airflation: Russia’s invasion of Ukraine has exacerbated a steady rise in crude oil prices over the past 18 months. Jet fuel now represents as much as 38% of an average airline’s costs, up from 27% in the years leading to 2019. For some budget airlines, it can be as high as 50%. pic.twitter.com/E9VGAhuwvP
— Markets & Mayhem (@Mayhem4Markets) June 7, 2022
U.S. trade deficit sharply Reversed in April to $87.1 billion. This is the quickest reversal in the Trade deficit since the Global Financial Crisis of 2008 when the US was in a #recession
— Golden Coast (Cassandra) (@GregCrennan) June 7, 2022
#recession … #Fed Pushing on a String edition#GDP #GDPNow 📉👀👇 t.co/jXUADEYub2 pic.twitter.com/awSWaZuAgg
— Invariant Perspective (@InvariantPersp1) June 7, 2022
The American consumer is dying on the vine.
Target stock is down over 40% since November.The destruction of the US economy is on PURPOSE. #recession #inflation #Underbiden
— Brian Glenn (@brianglenntv) June 7, 2022
Interest Costs on the National Debt Set to Reach Historic Highs in the Next Decade
Driven by rising interest rates and the accumulation of federal debt, interest will nearly triple in the next 10 years and reach a historic high relative to the size of the economy by 2032.
Japan Debt Debate: Heading for Titanic Crash?: WSJ
Shinzo Abe’s camp says deficit is misunderstood, but top finance officials seek balanced budget, likening the nation to a ship heading for an iceberg
Fed Data Shows… And Then a Seismic Explosion Under Bernanke, Yellen, and Powell
The charts above show that the Federal Reserve was able to get through World War I, the Great Depression, World War II, the Vietnam War and the stagflation of the 1970s, without an explosion in its balance sheet. But since Ben Bernanke, Janet Yellen and Jerome Powell have, in turn, sat at the helm of the Federal Reserve, there has been unprecedented growth in the Fed’s Balance Sheet.