Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Support MFO
Donate through PayPal
U.S. manufacturing sector said to be in a technical recession
It does seem like everything is slowly grinding to a halt. Too many problems are coming together during a sluggish economy. It would seem certain that the Fed will not raise rates and that has been repeated by others here as well.
Even AAPL, after a stellar 2Q report has gone down almost every day since for the past few weeks.
This has the potential to be a HUGE problem this time around, as the Fed has no interest-rate weapons left to coax the economy back to the positive side. Additionally, it's always been the purchasing power of the middle class which has been responsible for past increases in manufacturing. Many chickens are coming home to roost. Not to worry though- the 1% will come through just fine, and Walmart will probably do OK too.
This has the potential to be a HUGE problem this time around, as the Fed has no interest-rate weapons left to coax the economy back to the positive side.
There's always NIRP. Or devaluing the dollar. Or QE4 (or 5 or whatever we're on.)
It would not surprise me if countries in the future went cashless and part of that would be the idea that if they wanted to do NIRP, everyone would be effected.
Edited to add: hey, maybe President Trump has some ideas. LOL. What was that quote, "Every nation gets the government it deserves?" Or something along those lines...
It would not surprise me if countries in the future went cashless
@scott yes, we would be so much easier to monitor and to control that way @Jarrett well, Congress isn't entirely tapped out; there is always that big pot of money they borrow from, periodically, anyway--- the SSI money pot! (kill a program by starving it)
@Scott- When Jeb said "we can do better" I wonder if he had the Donald in mind?
There's actually an episode of "The Simpsons" set in the future where Lisa becomes president after Donald Trump has a horrible term as President. Honestly, nothing would surprise me at this point.
Lisa: As you know, we've inherited quite a budget crunch from President Trump. How bad is it, Secretary Van Houten? Milhouse: [shows a chart] We're broke. Lisa: The country is broke? How can that be? Milhouse: Well, remember when the last administration decided to invest in our nation's children? Big mistake. President Lisa's Aide: The balanced breakfast program just created a generation of ultra-strong super-criminals. Milhouse: And midnight basketball taught them to function without sleep.
Comments
Even AAPL, after a stellar 2Q report has gone down almost every day since for the past few weeks.
The bear is waking up.
It would not surprise me if countries in the future went cashless and part of that would be the idea that if they wanted to do NIRP, everyone would be effected.
Edited to add: hey, maybe President Trump has some ideas. LOL. What was that quote, "Every nation gets the government it deserves?" Or something along those lines...
@Jarrett well, Congress isn't entirely tapped out; there is always that big pot of money they borrow from, periodically, anyway--- the SSI money pot! (kill a program by starving it)
Lisa: As you know, we've inherited quite a budget crunch from President Trump. How bad is it, Secretary Van Houten?
Milhouse: [shows a chart] We're broke.
Lisa: The country is broke? How can that be?
Milhouse: Well, remember when the last administration decided to invest in our nation's children? Big mistake.
President Lisa's Aide: The balanced breakfast program just created a generation of ultra-strong super-criminals.
Milhouse: And midnight basketball taught them to function without sleep.