The Great Recession Blog

The Everything Bubble is bursting, and the Fed has barely even begun its war on inflation. Many top stocks are already in their own bear markets. Nvidia, way off its game, has lost 25% of its value from its last high score. The ridiculously skyrocketing Tesla has plunged back toward earth’s gravity on a trajectory […]

The market’s demolition that I’ve been talking about has begun. Zero Hedge asked the question on Thursday, “How bad is it?” and provides Morgan Stanley’s answer: Just how bad was yesterday’s market rout [Thursday’s]? According to quants at Morgan Stanley, it was worse than every selloff in the past 5 years, including the March 2020 crash…. ZH

Zero Hedge’s favorite quant from Nomura just laid out his measurements and metrics of the bond market that explain why treasury prices puked on Tuesday, and his assessment of what is happening precisely validates the “Big Reveal” that I made for readers here a few days ago when I opened one of my Patron Posts […]

There is no excerpt because this is a protected post.

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 […]

A little virus and a big set of misguided responses to it are sinking the unsinkable world. While third-quarter GDP growth came in a little higher than the Atlanta Fed was predicting, it still came in below the consensus of economists, which averaged at 2.6%. The Bureau of Economic Analysis came out with 2.0%:

The last time I included a particular indicator of where temporary inflation and permanent inflation are headed, the indicator had risen in rather threatening manner to look like this:

BlackRock’s Jean Boivin just said there are not apparent signs of stagnation — just inflation. What Bovine foolishness: Prices have climbed around the world, with commodities prices surging and U.S. inflation hitting a 13-year high. It’s the first time since the 1970s that a supply shock is the main culprit. This is where the comparison […]

The economic gurus and magic-chart advisors who told you inflation was going to be transitory or that it wouldn’t amount to much or even the dimmest of all who proclaimed it wasn’t happening at all could not have been proven more foolish and blind to the obvious all around them. Now they are revising themselves […]

There is no excerpt because this is a protected post.

Storm clouds blanket the entire global economy right now. In the articles I’ve written over the last ten days, I reported extensively on the following prevailing winds that are assailing all economies, and in this article and the next, I’ll reveal how our governments are actively making them much worse:

I’ve said inflation will rise much higher than the Fed believes and will persist much longer and that it will eventually kill the latest stock market bull and the economy. If these inflation predictions prove wrong, I’ll stop writing my blog. Simple as that. That is how firmly I believe what I am saying and […]