funny money and disinformation
A couple of articles showed up in this morning's headlines regarding the government's efforts
to downplay recession fears. Because politics.
A traditional definition of economic recession:
Two straight quarters of economic contraction is typically viewed as a recession.
The GDP report is scheduled for release on Thursday and, following first-quarter contraction at an annual rate of 1.6%, the latest data may confirm that the economy is shrinking.
But US Treasury Secretary Janet Yellen has denied that the American economy is in recession.
This is not an economy that’s in recession, but we’re in a period of transition in which growth is slowing, and that’s necessary and appropriate,” Yellen said.
OK then. It is, but it isn't. Just change the definition.
Also this ..
Nouriel Roubini says predictions for a mild recession are 'delusional' as severe financial crisis looms
Hopes for a mild recession are "delusional," said Nouriel Roubini, the economist who called the 2008 financial crisis.
He said debt ratios are historically high, while bailouts during the pandemic have resulted in "zombie corporations."
It runs contrary to what Wall Street banks like Goldman Sachs have been saying about the economy.
and this ..
The Treasury yield curve inversion is deepening as a key warning of a coming recession flashes its strongest signal since 2007
On Tuesday, a closely watched recession indicator gave its strongest signal since 2007.
An inverted yield curve between the 2 and 10 year Treasury notes has preceded recessions in 1990, 2001, and 2008.
Fed Chair Jerome Powell has shrugged off worries of an inverted yield curve.
Americans have plenty of savings and should keep spending, JPMorgan Asset Management has said.
Who to believe? I certainly do not think most Americans have plenty of savings. At least all these financial gurus don't deny there is runaway inflation. That is too obvious.