Inflation is bound to whipsaw next year as the US deals with two seismic shifts shaking the economy, according to BlackRock. Inflation is bound for a resurgence in 2024, BlackRock strategists warned in a recent note. The economy is reeling from two seismic changes and the pace of disinflation will soon slow. Strategists previously warned […]
Stock investors aren’t paying attention to “demons on the horizon,” Jeffrey Gundlach says. The DoubleLine Capital boss sees a recession next year as companies and consumers feel the squeeze. “The economy is only growing because we have a budget deficit that is 8% of GDP,” he said. “It’s about the same today as the depths
Commercial real estate is confronting significant challenges due to lower occupancy rates and higher interest rates. Even in cities like Boston, you find lots of vacancies, up to 40% of buildings. A market correction is about to happen because of rising rates, and we’ve got to refinance these buildings, and many of them have no
In March 2008, the Fed overlooked the clear signals provided by the Bear Stearns’ failure leading to the Great Economic Recession. The Federal Reserve is sticking to its mantra of high-interest rates for longer in order to regain inflation control. By so doing, the Fed risks inviting a financial system crisis next year that could
Is The Fed Ignoring Signs of Another Financial Collapse? Read More »
Us debt up over 1.7 trillion in three months. The national debt – which measures what the U.S. owes its creditors — hit $33.04 trillion as of Monday afternoon. “As lawmakers drift from one short-term fiscal crisis to the next, our national debt just keeps piling up, trillion after trillion,” said Michael Peterson, CEO of
US National Debt Hits $33T for First Time in History Read More »
Strand noted that since President Richard Nixon closed the gold window, effectively taking the U.S. dollar off the gold standard, the U.S. dollar’s value against gold has declined 97%. The combination of unabated money printing from the central banks resulting in enormous balance sheets and higher money velocity gave us the latest price inflation,” Strand said in his latest
The inverted yield curve on U.S. Treasuries has been flashing warnings about the economy for some time now. 10-year yield has been below the 3-month rate for 212 trading days. Such an inversion telegraphed the last eight recessions. And on Sept. 14, the market surpassed the 1980 record to hold that way for the longest
The Bond Market Has Never Sounded Recession Alarms for This Long Read More »
Easily identifiable domestic threats to portfolios include lingering inflation along with possible future interest rate hikes, a reignition of banking issues, and housing prices that have stretched higher in relation to relative incomes than they did during the 2008-09 financial crisis. Investors have yet to break even from January 2022 and are still realizing losses of
Record Global Debt Could Deliver Punishing Blow to Markets This Year Read More »
Efforts to bring down inflation could collide with high debt loads, Goldman Sachs warned, highlighting the implications for US debt. That comes as higher rates are already pressuring government balances via increasing interest costs. “This suggests the US and UK are the most obvious candidates for a duration risk premium repricing.” The note said, referring
Topping his concerns include central banks reining in liquidity programs via “quantitative tightening,” the Ukraine war, and governments around the world “spending like drunken sailors.” “If and when you have a recession, which you’re eventually going to have…,” Dimon said. “In a normal credit cycle, something always does worse than expected,” he added. “I think
