First, the Fed tried to tell us inflation was transitory and it hit a 40 year high.
Then, the Fed tried to tell us we wouldn’t have a recession and now we’re in one.
Next, the Fed will try to tell us the recession is transitory.
You are now witnessing a historic Fed failure.
— The Kobeissi Letter (@KobeissiLetter) July 30, 2022
US Misery index = CPI YoY + Unemployment rate pic.twitter.com/aRqUSgZJ4r
— 🅰🅻🅴🆂🆂🅸🅾 (@AlessioUrban) July 31, 2022
When the Fed pivoted in 2018, stocks and t-bonds gained the same amount: 30%.
During the pandemic crash, stocks gave up all gains and t-bonds rallied for a total gain of 60%.
In other words on soft landing, they perform the same. On hard landing, there's no comparison. pic.twitter.com/mX4Otu0Auz
— Mac10 (@SuburbanDrone) July 30, 2022
Stocks are now officially massively overvalued relative to Treasury bonds.
In recession, stocks will underperform bonds by a minus sign.
What Wall Street doesn't want you to know – there is now no reason to own stocks. pic.twitter.com/7UGVehGlii
— Mac10 (@SuburbanDrone) July 30, 2022
Recession at the zero bound for the middle class.
Bull market for the casino class.
SOLD back at one year overbought.
Anyone who believes that fairy tale deserves their fate. pic.twitter.com/QAEi0ZD0d4
— Mac10 (@SuburbanDrone) July 29, 2022
Procter & Gamble Warns That American Consumers Are Starting to Crack Under Inflation
Procter & Gamble warned on July 29 that consumers are beginning to buckle under the weight of inflation, …
U.S. Facing ‘Perfect Storm’ for 2008-Like Housing Crisis: Economist
The U.S. is facing a “perfect storm” for a housing crisis similar to that of 2008, according to Jose Torres, a senior economist for Interactive Brokers.
REAL GDP SAYS – Don’t Trust the Fed: The REAL Economy Is Collapsing All Around You!”
The bottom line there is that, if workers don’t return to work, the ratio of producers to consumers will remain seriously deficient, which means there will not be enough goods or services..