Tag: 2019 recession

Authored by Michael Snyder via The Economic Collapse blog,

Do you remember what it was like in 2008 when it literally felt like no job was truly safe?

It was a terrible time, and many fear that we could soon be facing a similar scenario.  In recent days, big companies all across America have been laying off workers at a frightening pace.  As economic activity has slowed down, a lot of firms are feeling compelled to slash their payrolls, and if a deep recession is ahead of us then what we have seen so far could be just the tip of the iceberg.  In 2008 and 2009, millions of Americans lost their jobs very rapidly, and it could very easily happen again.

Continue reading “This Is What A Recession Looks Like”

Guest Post by Sven Henrich

Read this paragraph carefully:

Since last year real GDP growth has been slowing. The chair of the Federal Reserve has been signaling that, while growth is slowing, there is no recession risk and the Fed is forecasting continued positive growth. Warning signs in the economy, including an inverted yield curve, have been ignored and stock markets continued to make new highs in July.  In August a correction took a place and subsequently a rally ensued into early September. On September 18 the Fed is expected to cut rates.

Continue reading “Stock market’s eerie parallels to September 2007 should raise recession fears”

Via Branco

Authored by Charles Hugh Smith via OfTwoMinds blog,

Does anyone really think The Everything Bubble can just keep inflating forever?

What do I mean by a profoundly shattering recession? I mean, a systemic, crushing recession that can’t be reversed with central bank magic, a recession that only deepens with time. The last real recession was roughly two generations ago in 1981; younger generations have no experience of a profound recession, and perhaps older folks have forgotten the shock, angst and bitterness.

A profoundly shattering recession leaves tremendous damage and pain in its wake. Millions of people who reckoned their position was secure get laid off, businesses that looked solid melt into air, large corporations flip from hiring thousands to firing thousands, and everyone on the edge of insolvency gets a hard push over the cliff.

Continue reading “The Benefits Of A Profoundly Shattering Recession”

Authored by Brandon Smith via Alt-Market.com,

One thing that is important to understand about the mainstream media is that they do tell the truth on occasion. However, the truths they admit to are almost always wrapped in lies or told to the public far too late to make the information useful.   Dissecting mainstream media information and sifting out the truth from the propaganda is really the bulk of what the alternative media does (or should be doing).  In the past couple of weeks I have received a rush of emails asking about the sudden flood of recession and economic crash talk in the media.  Does this abrupt 180 degree turn by the MSM (and global banks) on the economy warrant concern?  Yes, it does.

The first inclination of a portion of the liberty movement will be to assume that mainstream reports of imminent economic crisis are merely an attempt to tarnish the image of the Trump Administration, and that the talk of recession is “overblown”.  This is partially true; Trump is meant to act as scapegoat, but this is not the big picture.  The fact is, the pattern the media is following today matches almost exactly with the pattern they followed leading up to the credit crash of 2008.  Make no mistake, a financial crash is indeed happening RIGHT NOW, just as it did after media warnings in 2007/2008, and the reasons why the MSM is admitting to it today are calculated.

Continue reading “The Real Reasons Why The Media Is Suddenly Admitting To The Recession Threat”

Authored by Michael Snyder via The Economic Collapse blog,

The numbers are telling us that we have never been closer to the next recession than we are right now.  The storm clouds that were gathering on the horizon are now directly above us, and suddenly the mainstream media is filled with storiesabout when the next recession will begin and the effect that this may have on President Trump’s chances of winning in 2020.  In fact, there has been so much chatter about this that even President Trump is talking about it.  All over television, experts are breathlessly speculating about when the coming recession will begin, and they are dispensing lots of advice about how people should be preparing for it.

So what evidence has led so many of these talking heads to come to such a conclusion?

Continue reading “11 Reasons Why So Many Experts Believe That A US Economic Crisis Is Imminent”

Guest Post by Ron Paul

Stocks fell last week following news that the yield curve on Treasury notes had inverted. This means that a short-term Treasury note was paying higher interest rates than long-term Treasury note. An inverted yield curve is widely seen as a sign of an impending recession.

Some economic commentators reacted to the inverted yield curve by parroting the Keynesian propaganda that recessions are an inevitable feature of a free-market economy, whose negative effects can only be mitigated by the Federal Reserve. Like much of the conventional economic wisdom, the idea that recessions are caused by the free market and cured by the Federal Reserve is the exact opposite of the truth.

Continue reading “Are Recessions Inevitable?”

Guest Post by John Mauldin

This month, the Federal Reserve joined its global peers by turning decisively dovish. Jerome Powell and friends haven’t just stopped tightening. Soon they will begin actively easing by reinvesting the Fed’s maturing mortgage bonds into Treasury securities. It’s not exactly “Quantitative Easing I, II, and III,” but it will have some of the same effects.

Why are they doing this? One theory, which I admit possibly plausible, was that Powell simply caved to Wall Street pressure. The rate hikes and QT were hitting asset prices and liquidity, much to the detriment of bankers and others to whom the Fed pays keen attention. But that doesn’t truly square with his 2018 speeches and actions. The Fed’s March 20 announcement suggests more is happening.

Continue reading “Recession Signs Everywhere”

From Birch Gold Group

The economy operates in cycles. Booms and busts, bubbles and recessions, ups and downs.

Following this pattern of cycles means there is always some level of risk when investing in that economy through stocks, bonds, options, etc.

Your retirement security depends on a lot of factors, but your exposure to risk is what could be the difference between sipping a Mai-Tai on the beach or outright panic.

If your portfolio is over-exposed to riskier investments like stocks, a recession would act as a multiplier of that risk. According to a piece at CNBC, Megan Murphy thinks half of baby boomers are in this “higher risk” category:

Continue reading “This Could Decimate Your Retirement Savings During the Next Recession”

Authored by Chris Martenson via PeakProsperity.com,

We’ve arrived at the end of the line…

We’ve enjoyed years of “recovery” since the Great Financial Crisis by literally papering over our problems with newly-printed money, instead of addressing their root causes.

But we’ve now arrived at the awkward part of the story; when all of our prior mistakes finally catch up with us, and the plot heads in a much darker direction.

Despite more than a decade of an “all-hands-on-deck” propping up of the financial markets, all the central bankers have to show for it is the widest wealth gap in history coupled with stagnant wages.

That, and a skyrocketing cost of living.

B.S. From The BLS

Depending on which OECD country you live in, you can take your ‘official’ inflation measure and multiply it by either a 2x or a 3x to get the true rate.

For example, in the US we’ve been told that inflation is running at just under 2% for years. In reality, it’s been trucking along at closer to 4% to 6% (for rural and urban dwellers, respectively).

Continue reading “Next Stop: Recession!”

Authored by Charles Hugh Smith via OfTwoMinds blog,

Combine sky-high commercial rents in homogenized, gentrified urban areas and sharp declines in the incomes of the limited populace who can afford gentrified urban areas and what do you get?

A number of macro dynamics have set up gentrified urban America for a big fall in the coming recession. What does gentrified mean? Gentrified means only the gentry (top 10%) can afford to enjoy the urban amenities as commercial rents and the cost of doing business in desirable urban areas have skyrocketed along with residential rents.

As a result, low-margin businesses have been squeezed out of desirable urban neighborhoods along with lower-income residents. The top 10% is the only demographic who can afford to live in gentrified urban America.

Continue reading “Gentrified Urban America Will Be Hit Hardest By The Recession”

Guest Post by Raúl Ilargi Meijer

I haven’t really written about finance since April of this year, and given recent fluctuations in what people persist in calling the markets, maybe it’s time. Then again, nothing has changed since that article in April entitled This Is Not A Market. I was right then, and I still am.

[..] markets need price discovery as much as price discovery needs markets. They are two sides of the same coin. Markets are the mechanism that makes price discovery possible, and vice versa. Functioning markets, that is. Given the interdependence between the two, we must conclude that when there is no price discovery, there are no functioning markets. And a market that doesn’t function is not a market at all.

[..] we must wonder why everyone in the financial world, and the media, is still talking about ‘the markets’ (stocks, bonds et al) as if they still existed. Is it because they think there still is price discovery? Or do they think that even without price discovery, you can still have functioning markets? Or is their idea that a market is still a market even if it doesn’t function?

Continue reading “2019: Zombie Markets Before The Fall”