What’s frightening is the amount of leverage and debt we have now compared to 2007.
This unwind will be biblical.
And just to be clear the warning signs were flashing red for 12 months.
Please don’t say “Well no one saw that coming”
— Jonathan James (@21JonathanJames) September 1, 2022
financial wrecking balls: real yields & dollar pic.twitter.com/e5oBoxzxvN
— Alastair Williamson (@StockBoardAsset) August 31, 2022
Zoltan Pozsar: US faces ‘L-shaped’ recession as Fed scrambles to tame inflation
The US economy will likely have to stay in recession for longer than anticipated in order to bring runaway inflation under control, according to a top analyst.
Zoltan Pozsar, the global head of short-term interest rate strategy at Credit Suisse Group AG, wrote a client note pushing back on widespread sentiment that the worst of inflation may be behind us and that the Federal Reserve will begin lowering interest rates.
Instead, the US may have to gird for a so-called “L-shaped” recession that will be deeper and longer than expected, according to Pozsar.
Pozsar cited the ongoing Russian invasion in Ukraine as well as disruptions to the supply chain exacerbated by intermittent COVID-related lockdowns in China.
1/3 of US homes sold in Q1 went to investors, not to people intending to live in them. 🤔
— Andrew Sinclair, CFA (@CT_Osprey) August 31, 2022
🇺🇸 Bulls Starved in August Amid Broadest Cross-Asset Drop Since ‘81 – Bloomberg
*Link: t.co/ZBrUI7irJ1 pic.twitter.com/H9AFy412Qe— Christophe Barraud🛢🐳 (@C_Barraud) September 1, 2022