When inflation first became a topic of conversation, I stated my view that unless we saw real positive, net interest rates, inflation would not be controlled.
The Federal Reserve will reverse course and begin to pursue loose money policies again reducing interest rates and once again engage in quantitative easing.
Ultimately, we will not avoid a deflationary event that will be unlike anything any of us have ever seen.
Inventories of ‘spec’ houses are now at the highest level since 2008 which saw the worst of the Great Financial Crisis
Layoffs are intensifying, the last inflation report was not promising, the stock market is reacting negatively and many retirees are thinking about going back to work. Seems to define a stagflationary recession doesn’t it?
There is a lot going on globally that will, in my view, create some additional headwinds for the US economy moving ahead.
Regardless of what you call it, a recession is here in my view. And the data suggests it will get worse before it gets better.
Real estate is now at the beginning of a decline that will rival the plunge in prices experienced at the time of the Great Financial Crisis.
The evidence suggests the onset of a housing crash that occurred at the time of the Great Financial Crisis may be getting close.
The “Inflation Reduction Act” passed recently will do nothing to reduce inflation. It increases federal spending which can only be financed via additional currency creation by the Federal Reserve.