The economy isn’t terrible, it‘s just build on sand. It has defied the odds and the underlying numbers, but then again, coming out of a pandemic is abnormal. For example, the yield curve is still inverted. That is typically a key indicator of recession. What do you think it means when you can get higher rates on short term CDs vs long? The sentiment is that the fed will need to cut rates in the long term. Why would that be? Oh yeah, to mitigate a downturn. Don’t get me wrong, I am taking full advantage of banks paying 5%+ on 1 year daily compounding CDs as well as throwing money in tech stocks, but I a know to hedge my bets. This is anything but a stable economy.
Recession probability monthly projection U.S. 2024 | Statista
Following COVID, people went on spreading sprees with free government money. Now that money is drying up, Joe is upping the child tax credit, the EITC and 136 billion in student load forgiveness to see if he can keep in rolling. Free money or not, credit card debt has increased dramatically. Yes, there is a large bubble that will burst soon enough.
An article from a source you likely trust.
Credit card delinquencies surged in 2023, indicating 'financial stress,' New York Fed says
The voices you listen to told you that inflation was transitory. We knew better. Us “rich” Republicans didn’t get rich by listening to the Democrats on skid-row.