beretta304
Rookie
- Banned
- #21
The U.S. economy is in a vicious cycle in which countless interventions and bailouts have resulted in distorted financial markets, he claims. Bailing out troubled banks has helped the financial sector, but the economy is still growing far too slowly years after the credit crisis.
The labor market still isnt growing at a sustainable pace that keeps up with population growth. According to Hussmans calculations, a double-dip recession is happening as we speak.
From Hussman (MarketBeats emphasis included):
By our analysis, the U.S. economy is presently entering a recession. Not next year; not later this year; but now. We expect this to become increasingly evident in the coming months, but through a constant process of denial in which every deterioration is dismissed as transitory, and every positive outlier is celebrated as a resumption of growth. To a large extent, this downturn is a boomerang from the credit crisis we experienced several years ago. The chain of events is as follows:
Financial deregulation and monetary negligence -> Housing bubble -> Credit crisis marked by failure to restructure bad debt -> Global recession -> Government deficits in U.S. and globally -> Conflict between single currency and disparate fiscal policies in Europe -> Austerity -> European recession and credit strains -> Global recession.
In effect, were going into another recession because we never effectively addressed the problems that produced the first one, leaving us unusually vulnerable to aftershocks. Our economic malaise is the result of a whole chain of bad decisions that have distorted the financial markets in ways that make recurring crisis inevitable.
U.S. Economy Is In a Recession Right Now, Hussman Says - MarketBeat - WSJ
The labor market still isnt growing at a sustainable pace that keeps up with population growth. According to Hussmans calculations, a double-dip recession is happening as we speak.
From Hussman (MarketBeats emphasis included):
By our analysis, the U.S. economy is presently entering a recession. Not next year; not later this year; but now. We expect this to become increasingly evident in the coming months, but through a constant process of denial in which every deterioration is dismissed as transitory, and every positive outlier is celebrated as a resumption of growth. To a large extent, this downturn is a boomerang from the credit crisis we experienced several years ago. The chain of events is as follows:
Financial deregulation and monetary negligence -> Housing bubble -> Credit crisis marked by failure to restructure bad debt -> Global recession -> Government deficits in U.S. and globally -> Conflict between single currency and disparate fiscal policies in Europe -> Austerity -> European recession and credit strains -> Global recession.
In effect, were going into another recession because we never effectively addressed the problems that produced the first one, leaving us unusually vulnerable to aftershocks. Our economic malaise is the result of a whole chain of bad decisions that have distorted the financial markets in ways that make recurring crisis inevitable.
U.S. Economy Is In a Recession Right Now, Hussman Says - MarketBeat - WSJ
