Premium Posts Archive

Fed Tightening Impacts Markets: How Fast and How Furious?

Posted January 17, 2022 By David Haggith

The Fed has a solid track record of killing its children and eating them, which is to say destroying all of recoveries it worked so hard to originally nurture. This it does by how it shifts into tightening mode with a jolt, almost always taking down the stock market with it. This time is no […]

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The Electric Kool Aid Stock Market Crash Test

Posted November 21, 2021 By David Haggith
Air liner dead in the water

How overpriced, overbought and out of touch with the overall economy is the US stock market? Let me tell you in pictures. First, let’s start with a comparison of stock prices to the US economy as it stands today: Based on Warren Buffet’s favorite indicator of stock-market over-or-under-valuation, the market is far more overvalued than […]

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The Big Blindspot that Will Bite Bonds and Stocks in the Butt

Posted November 8, 2021 By David Haggith
Wheelbarrow full of money outside of Fiest Bank in Germany Weimar Republic

The Fed finally begun its cautious taper and the market did not immediately self-destruct… but the consequences of 14 years of central bank experimentation, regulatory overkill and the ‘processification’ of markets will have consequences… they may be bleak…. When bond markets sneeze… equity markets can end up on ventilators, dragging confidence down in their wake. Bill […]

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The shortages are stacking up like containers in LA, faster than one can process them into simple lists in articles. Here is the latest stack from headlines of major publishers. Big grocery starved, prices to skyrocket In Denver, public-school children are facing shortages of milk. In Chicago, a local market is running short of canned […]

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2017 Economic Forecast is looking like the mother of all storms

The energy crisis spills across the ocean And I’m not talking about the California spill. The budding energy crisis I wrote about last week is likely to explode globally this winter into a massive crisis, which is why it is already whipping up US markets. Within just a few days after I wrote that article, […]

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Fed-up and Failing: How FedMed Killed the Patient

Posted August 30, 2021 By David Haggith

When The Great Recession Blog was conceived back in early 2011, I wrote the following statement to my friend Stan who was thinking about developing a website of his own, which became the core theme for this site: I think focusing on the economy from the perspective of economic sustainability might be better. I don’t know if […]

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The Great Inflationary Train Wreck is Here

Posted July 19, 2021 By David Haggith
By Photo credited to the firm Levy & fils by this site. (It is credited to a photographer "Kuhn" by another publisher [1].) (the source was not disclosed by its uploader.) [Public domain], via Wikimedia Commons

I’ve bet my blog on my prediction that inflation will crash both the economy and the stock market, saying I believe with enough conviction that I’ll stop writing on economics if it fails to happen. Why? Because I wouldn’t want to be one of those doom-porn writers who keeps going even after major misses, and […]

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Katelynn & Jordan Hewlett, AP, CC BY-SA 4.0 , via Wikimedia Commons

In my last article, I broke apart the arguments that are popularly used against my prediction that inflation will spiral up hotter than the Fed thinks and last longer. In this article, I lay out arguments that are being raised by others and myself for why inflation will run hotter, reaching higher for longer.

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Burning hundred-dollar bill

This past week we saw the Fed make a significant change in its predictions about inflation, raising the rate it thinks we will have averaged at the end of a year by another one percent. That means, quite simply, the Fed was wrong about how high inflation would go up to the last meeting, and […]

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Is the Housing Market about to Top Out?

Posted May 31, 2021 By David Haggith
A housing market crash in 2018 is where we start 2019

Several signs have appeared in the past few weeks that indicate buyers are suffering from fatigue and may have gone about as high as they are willing or able to go. While housing prices have shot up for months, wages have stagnated. Government stimulus checks have offset that, but you cannot really make a long-term […]

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Inflation Tsunami Sirens Are Screaming!

Posted May 7, 2021 By David Haggith
David Rydevik (email: david.rydevikgmail.com), Stockholm, Sweden., Public domain, via Wikimedia Commons

You can wait for the deluge to hit and then run, or heed the sirens just in time. As I wrote a year ago, the big news for these COVID years would likely be inflation at levels we haven’t seen in a long time. The best harbingers for this kind of disaster for the average […]

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Inflationary Rocket Train Accelerating Rapidly

Posted April 16, 2021 By David Haggith

We’ve now hit that critical juncture when price inflation is picking up momentum quickly. So, it is time I reveal the many areas were high inflation is starting to show up and as well as demonstrate the fuel source that will drive it up even more in the near future.

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