“The Fed doesn’t want to say this explicitly, but it is actually saying (in not so many words) that a recession is very likely coming our way,” economist David Rosenberg said in a note on Thursday. In previous soft landings, the Fed usually cut rates by 75 basis points, but they’re forecasting a 150 basis-point […]
The Fed’s Rate-Cut Projections Are Pointing to an Imminent Recession, Economist Says Read More »
Unemployment will reach 6% or 7%, and a hard landing will hit by the end of 2024, a strategist says. Declining inflation is set to shrink company profits and force layoffs. Mizuho’s Dominic Konstam said declining inflation wasn’t a “benign indicator” of a soft landing. Those trying to read the tea leaves in inflation data
Spotify cut 1,500 jobs – or around 17% of its employees – on Monday. CEO Daniel Ek pointed to higher debt-refinancing costs as one factor driving the layoffs. It’s a reminder of the debt-market time bomb looming for many companies, with interest rates having surged in recent years. As many as 561 US companies had
Spotify’s Layoffs Show There’s a Debt-Market Time Bomb Awaiting Many Companies Read More »
The Treasury is on track to borrow over $3 trillion this fiscal year, 50 percent more than previously estimated by the Congressional Budget Office. Bidenomics, perhaps best defined as the government spending, borrowing, and printing too much money, not only made the bomb larger but also caused inflation, which forced up interest rates. That was the
The Fuse on America’s Debt Bomb Just Got Shorter Read More »
Jamie Dimon said, “I want to point out the central banks 18 months ago were 100% dead wrong,” he added, “I would be quite cautious about what might happen next year….” The last time US government bond yields climbed so far, so fast, the nation plunged into back-to-back recessions. The Fed’s record of predicting recessions
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The billionaire founder of Bridgewater Associates, the world’s largest hedge fund, flagged America’s record $33 trillion of debt as “risky.” Ray Dalio is worried about America’s borrowing binge and economic growth cooling. The billionaire investor warned of a “debt crisis” and a “meaningful slowing of the economy.” Dalio has previously flagged interest rates, civil unrest,
One important economic indicator that’s currently flashing hasn’t appeared since the 1930s during the height of the Great Depression. A growing amount of data indicates that a gigantic economic crisis could be right around the corner. The latest economic data shows the annual M2 money supply growth rate has been negative for the past three quarters, meaning
New Data Reveals a Crash Not Seen Since Great Depression Could Hit in 2024 Read More »
“In my book is incoming stagflation and that’s been holding gold up at these levels,” he said. “We have said before, but now is the time to be patiently bullish on gold.” The gold market has room to fall further and even test support at $1,800 an ounce after falling below $1,900 for the first time since
Gold’s Selloff Doesn’t Change the Long-Term Bullish Outlook – Saxo Bank Read More »
I’m not sure if the world is prepared for 7%. Deutsche Bank economists put the odds of a U.S. recession “near 100%,” and warned that “avoiding a hard landing would be historically unprecedented.” Bank of America said last week that investors were dumping stocks at the fastest pace since the end of 2022 amid concern that higher-for-longer rates would raise
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
