Morning Wire Get Ready for Recession | 6.15.22
Jun 15, 2022
The S&P 500 has plunged into a bear market, raising fears of an impending recession. Inflation and interest rate hikes are influencing economic forecasts and consumer costs. The January 6 committee reveals that Trump knew he had lost the election, while the golf world is shaken as the PGA suspends players joining a Saudi-backed league. This controversial move has sparked debates about the future of traditional golf amid new financial challenges.
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Recession Insights
- The S&P 500 entered a bear market, signaling a potential recession.
- The Fed's stimulation and artificially low rates contributed to inflation.
Economic Advice
- Prepare for a hard economic landing due to the Fed's overstimulation.
- The only way to curb inflation is to raise interest rates above inflation levels.
1980s Recession
- In 1979-1981, Paul Volcker tackled 10.5% inflation with 21% interest rates.
- This caused a recession and job losses, but successfully curbed inflation.