"To shooting shark..." 2020 saw an American novel coronavirus epidemic that+3/-1
Author:TheCrow 9/6/2022 3:39:14 PM
Reply to: 2741508
"To shooting shark..."
2020 saw an American novel coronavirus epidemic that killed more than a million Americans, caused record high unemployment and the sharpest economic contraction since the Great Depression.
Why? Because The Donald could not admit in an election year that there could be such a public health emergency.
PUBLISHED TUE, MAR 17 20202:10 PM EDTUPDATED WED, MAR 18 20208:00 AM EDT
President Donald Trump claimed on Tuesday he has believed the coronavirus outbreak was “a pandemic, long before it was called a pandemic” — but in January, he explicitly played down concerns when asked about it.
“No, not at all,” Trump told CNBC in a Jan. 22 interview on CNBC when “Squawk Box” co-host Joe Kernen asked him if there were worries about an outbreak of the novel coronavirus in China becoming a “pandemic.”
“It’s going to be just fine,” Trump assured Kernen during the interview at the World Economic Forum in Davos, Switzerland.
That's a lie to divert the suggestable, the naive and ignorant from the facts. I remember TrumpeRINO frog boys on this forum suggesting that the Democratic administrations in 'blue' states were directly responsible for the epidemic. But, oh- did that change! when Trump was infected and the epidemic spread nationwide.
Trump knew that informing the American people of the danger would make him look bad in an election year-
President Trump acknowledged Wednesday that he intentionally played down the deadly nature of the rapidly spreading coronavirus last winter as an attempt to avoid a “frenzy,” part of an escalating damage-control effort by his top advisers to contain the fallout from a forthcoming book by The Washington Post’s Bob Woodward.
The result is on the record- a complete political failure for the Trump administration.
The result went beyond a million deaths and record unemployment. Trump's incompetence collapsed the American economy:
The U.S. economy shrank by 3.5 percent in 2020 as the coronavirus pandemic ravaged factories, businesses and households, pushing U.S. economic growth to a low not seen since the United States wound down wartime spending in 1946.
Overall, the economy was surprisingly resilient in the second half of the year, given the falloff at the start of the public health crisis, according to data released Thursday from the Bureau of Economic Analysis. Yet, the 1 percent growth in the fourth quarter signaled a faltering recovery and a long road ahead, with 9.8 million jobs still missing and 23.8 million adults struggling to feed their families.
“2020 has no precedent in modern economic history,” said David Wilcox, senior fellow at the Peterson Institute for International Economics and a former director of the domestic economics division at the Federal Reserve. “The influenza of 1918 and 1919 predates our modern system of economic statistics, and since World War II, there’s never been a contraction that even remotely approached the severity and the breadth of the initial collapse in 2020.”
Donald J trump made Joe Biden a rational option on the ballot. What would have been a walk-over election for Trump became a challenge from the opposition that should never have been presented to Trump.
Trump proved himself a failure as an American leader. Mar a Lago, the rest of his antics reinforce that perception. The best thing he could do for a credible legacy is STFU- the single thing he is absolutely incapable of.
Y'all have heard of 'economic business cycles', yes?+3/-0
Author:TheCrow 9/6/2022 3:39:21 PM
Reply to: 2741508
At some point the market corrects for excesses?
America could theoretically minimize that exposure economic cycles with a controlled economy. That could, again, in theory- avoid contractions, recessions and depressions.
BY DIRK HOFSCHIRE, CFA, SVP; JACOB WEINSTEIN, CFA, RESEARCH ANALYST, ASSET ALLOCATION RESEARCH; LISA EMSBO-MATTINGLY, DIRECTOR; AND CAIT DOURNEY, ANALYST
– 08/29/2022
3 MIN READ
Key takeaways
The US is in the late-cycle expansion phase. The economy is still growing but the labor market is tight, companies are reporting less earnings, inventories are high, interest rates are rising, and the yield curve is flatter than it was earlier in the cycle.
Globally, central banks have tightened monetary policy and major economies like China and Europe continue to be impacted by COVID and the Russian invasion of Ukraine. The chances of market volatility remain high as inflation persists amid slowing growth momentum and higher interest rates from the Federal Reserve.
United States
The US is in the late-cycle expansion phase with moderate recession risk.
The economy is exhibiting late-cycle trends including a tight labor market, declining profit margins, rising inventories, contractionary monetary policy, and a flatter yield curve.
Nominal wage growth is the highest in decades, but high inflation has rendered real-wage growth negative and is weighing heavily on consumer confidence and real income expectations.
Manufacturing supply-related pressures have started to ease, whereas housing and food inflation remain elevated, suggesting inflation will likely moderate but remain higher than levels experienced in recent decades.
Federal Reserve (Fed) rate hikes have raised the cost of borrowing, especially for mortgage rates.
Recent trends suggest a higher probability that the US may move through this cycle faster than prior cycles, but near-term recession risks remain moderate.
Global manufacturing activity exhibited typical late-cycle patterns, including positive yet slowing growth rates, inflationary pressures, and rising inventories relative to sales.
Europe is particularly exposed to fallout from the war in Ukraine, including higher natural gas prices, and these economies are experiencing high risk of recession.
China is still struggling to emerge from its growth recession. COVID-related lockdowns have hamstrung the industrial recovery, but policy easing is picking up steam.
Generally tighter global monetary policies and financial conditions are sapping momentum from the global expansion, and a broad set of crosswinds is creating greater differentiation among countries.
Asset allocation outlook
The late-cycle phase may warrant smaller active allocation positions with a focus on diversified and disciplined investment strategies.
The Fed faces a difficult balance of tightening monetary policy to confront decades-high inflation without prompting a downturn.
Slower liquidity growth, persistent inflation risk, slowing growth momentum, and greater monetary policy uncertainty raise the odds that market volatility will remain elevated.
Business cycle framework
The business cycle, which is the pattern of cyclical fluctuations in an economy over a few years, can influence asset returns over an intermediate-term horizon. Cyclical allocation tilts are only one investment tool, and any adjustments should be considered within the context of long-term portfolio construction principles and strategic asset allocation positioning.
The diagram above is a hypothetical illustration of the business cycle, the pattern of cyclical fluctuations in an economy over a few years that can influence asset returns over an intermediate-term horizon. There is not always a chronological, linear progression among the phases of the business cycle, and there have been cycles when the economy has skipped a phase or retraced an earlier one.
* A growth recession is a significant decline in activity relative to a country’s long-term economic potential. We use the “growth cycle” definition for most developing economies, such as China, because they tend to exhibit strong trend performance driven by rapid factor accumulation and increases in productivity, and the deviation from the trend tends to matter most for asset returns. We use the classic definition of recession, involving an outright contraction in economic activity, for developed economies. Source: Fidelity Investments (AART), as of 7/31/22.
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While vehicle prices have been going up, auto loan delinquency rates have remained surprisingly low for the first two years of the pandemic.
Unfortunately, this is no longer the case. As the Federal Reserve works to address growing inflation, more borrowers are falling behind on their auto loans, and we can expect delinquency rates to return to normal pre-pandemic levels over the coming months.
Why did auto loan delinquency rates remain steady?
Following the February Fed meeting, new data indicated that government assistance helped play a key role in keeping delinquency rates steady over the past two years. Because many of the Americans receiving extra assistance during this time also fall under the subprime category, it meant fewer loan originations.