We are in a recession

[Matt]

Two consecutive quarters of declining GDP = recession. I'm surprised no one has commented on this...

[MotorCityRadioFreak]

2% unemployment does not indicate recession.

[Matt]

2% unemployment does not indicate recession.

Unemployment only includes people looking for work that can't find it. In the current environment, it's not a useful statistic.

[Deleted User 15846]

I've been stating this for some months now, that we were creeping our way into one. With gasoline prices and an inflated home market, the proverbial storm elements are all in place for a market correction. Many economists predicted back in 2017, that President Trump's tax break could result in inflation, which indeed that's come to pass.

Not to mention, The US government keeps piling on more debt, which I believe is beyond ever paying back. Suffice to say, I do believe we could be heading into a lean couple of years.

My goodness, I logged into my 401k account yesterday and I staggered back a bit, it's taken quite a wallop as of late, in terms of losing money.

[MWmetalhead]

The decline in GDP is mostly a function of supply chain inefficiencies and to a lesser extent, insufficient pool of labor.

The Fed's aggressive interest rate hikes worry me in that it could cause a prolongment of the supply chain issues that currently exist. It becomes more difficult to "in source" production by building new plants domestically when the cost of financial capital increases. The rate increases could also cause a rise in commercial loan defaults or could cause (and probably will cause) some companies to downsize workforces or postpone capital investment in view of rising debt service costs.

The fact the politicians in Washington are not taking action to expand LEGAL immigration to fill the myriad job vacancies that exist troubles me.

[kager]

A recession? Seriously?

The present administration's hood ornament saying, "doesn't sound like a recession to me" is good enough for me.

Perhaps it's one of the reasons why there are talks of OBiden having dem challengers in the 2024 primary should he 'decide' to run again.

[MWmetalhead]

I certainly agree that there are (rightfully) concerns with the Democratic Party ranks regarding Biden's handling of the economy, and perhaps even more so, his messaging regarding the topic.

[Matt]

I certainly agree that there are (rightfully) concerns with the Democratic Party ranks regarding Biden's handling of the economy, and perhaps even more so, his messaging regarding the topic.

You don't think blaming Putin for EVERYTHING is solid messaging?

[MWmetalhead]

Nope.

Handing out bundles & bundles of money to people to sit at home and contribute nothing toward the output of products & services for an extended period of time is a significant reason things are as they are. Hardly a U.S. only problem, by the way.

This isn't simple inflation we are facing; it is "stagflation."

[audiophile]

I agree MW. I'm concerned the quest to tame inflation will be ineffective without product competition, and without capital to do that we're stuck in stagflation, as I wrote earlier:

https://www.msn.com/en-us/money/markets ... ar-AAZEnNo

I'm not sure inflation can be tamed, until supply lines are corrected.

It might cause an increase in prices, and smaller companies go under because they cannot borrow inexpensively.

[Michiganviewer]

The decline in GDP is mostly a function of supply chain inefficiencies and to a lesser extent, insufficient pool of labor.

The Fed's aggressive interest rate hikes worry me in that it could cause a prolongment of the supply chain issues that currently exist. It becomes more difficult to "in source" production by building new plants domestically when the cost of financial capital increases. The rate increases could also cause a rise in commercial loan defaults or could cause (and probably will cause) some companies to downsize workforces or postpone capital investment in view of rising debt service costs.

The fact the politicians in Washington are not taking action to expand LEGAL immigration to fill the myriad job vacancies that exist troubles me.

The real question is why the current commander in chief is not using the national guard and other military to relieve that supply chain issue.

All the equipment and man power is there to unload ships at ports and transport.

[Rate This]

The decline in GDP is mostly a function of supply chain inefficiencies and to a lesser extent, insufficient pool of labor.

The Fed's aggressive interest rate hikes worry me in that it could cause a prolongment of the supply chain issues that currently exist. It becomes more difficult to "in source" production by building new plants domestically when the cost of financial capital increases. The rate increases could also cause a rise in commercial loan defaults or could cause (and probably will cause) some companies to downsize workforces or postpone capital investment in view of rising debt service costs.

The fact the politicians in Washington are not taking action to expand LEGAL immigration to fill the myriad job vacancies that exist troubles me.

The real question is why the current commander in chief is not using the national guard and other military to relieve that supply chain issue.

All the equipment and man power is there to unload ships at ports and transport.

How many of them are trained to operate an 18 wheeler over a long distance?

[MotorCityRadioFreak]

Want to end the "recession" and fill all of these supposed jobs? Pay more. Truckers are getting absolutely hosed, literally. While regular unleaded has decreased around $1 a gallon in most areas, diesel has stayed very high. Let's get a larger tax on big oil and fund the truckers who are getting grossly underpaid and running thin margins for take home pay.