Sponsored Content




Intermarkets' Privacy Policy
Support


Donate to Ace of Spades HQ!



Recent Entries
Absent Friends
Jesse in D.C. 2022
OregonMuse 2022
redc1c4 2021
Tami 2021
Chavez the Hugo 2020
Ibguy 2020
Rickl 2019
Joffen 2014
Cutting The Cord And Email Security
Moron Meet-Ups
PNWMoMe:06/04/2022
Yakima, WA

Contact Mark Andrew Edwards

NoVaMoMe: 6/11/2022
Arlington, Virginia
Registration closes May 31st.
email for info
All requests get a prompt response, so check your spam folder!

1st Annual Alaska MoMe:
7/15-7/17/2022,
Willow, Alaska
email for info

Texas MoMe 2022: 10/21/2022-10/22/2022 Corsicana,TX
Contact Ben Had





























































ę Old Karens Go Wilding on a Young Black Man | Main | Virginia Mask Karen Resistance May End By Valentine's Day as Democrat Senator Tells Them: Fix a Date Certain to End Mandatory Masking, Or I'll Vote With the Republicans To Change the Law to Force You To Ľ
January 24, 2022

"Catastrophic" Market Crash; Are We In a New Recession?

Note: The market actually rebounded from today's lows, but the general down trend of the past week, and general pessimism for the next year, isn't fixed by a bounce off a daily low.

Here's how it looked earlier for Joey Waffle Cone:

Screenshot (1342).png


There is a "catastrophic stock market crash" unfolding.

And it might last a while.

As a week-long selloff thatís pushed major indexes down to the brink of bear-market territory intensifies, investment banks are warning clients the worst may be yet to come, with some experts warning that the S&P 500 could plunge as much as 11% more if corporate earnings continue to disappoint as the Federal Reserve begins raising interest rates.

Dragged down by a fifth straight day of steep losses in the tech sector, the S&P 500 fell nearly 4% to 4,236 Monday morning, pushing the index down more than 10% for the year, before an end-of-day surge that helped it tick up 0.4%.

A "disappointing" start to fourth-quarter earnings season could spell trouble for stocks this year, Goldman Sachs' David Kostin wrote in a Monday note, forecasting the S&P could plunge as much as 11% from Friday's close (to 3,914) if higher interest rates and the reduction in Fed stimulus push annual corporate profits down 4% from 2021.

Morgan Stanley's Michael Wilson struck a similar tone, telling clients on Monday to "hunker down for a few more months," as slowed earnings growth joins monetary policy uncertainty as primary market concerns.

"It's too early to be bullish," Wilson said, warning the S&P could plunge another 10% while pointing out the "most speculative parts" of the market have been hit the hardest, with names like Peloton down 75% in six months.

As inflation falls once the Fed starts hiking rates, Wilson says he's "most bearish" on consumer goods, apparel and housing-related stocks that have benefited from rising prices.

Kostin says some sort of catalyst--such as a slowdown in inflation--will be necessary to curb the broad-market selloff, but Goldman economists don't expect prices will cool down until the second quarter; other potential catalysts include an "extremely strong" earnings season or a Fed policy pivot.

It wasn't just Biden's spending -- it was also all the quantitative easing during the covid lockdowns, which just added to all the quantitative easing under Obama's serial Recovery Summers.

But Brandon's drunken-sailor spending spree seems to have been the last straw. The economy defied basic economic physics and somehow did not show high inflation even through all of Obama's excessive spending and constant quantitative easing from his fed chairman, leading some very stupid people to conclude, impossibly, that inflation was no longer a threat. That we were in a "post-inflationary economy" or something.

It's so stupid I can't believe I just wrote that.

But Biden throwing another couple of trillion onto the National Money Barbecue ignited high inflation which is causing the fed to raise interest rates which in turn is puncturing the speculative bubble in the market and causing it to crash.

Which may ignite another recession. A "major recession," Andy Puzder writes.

On Bloomberg, an analyst says we're headed for a "bumpy road" but predicts there won't be a recession, but suddenly the R-word is on everyone's mind.

And if there is another recession -- then what will the government and fed do? Spend more trillions? Cut interest rates again?

They've already done too much of that.

Those bullets have done been shot off already.

So we're probably going to have to just mostly ride this one out without fiscal and monetary interventions. (Conservative monetary theorists probably welcome seeing this happen.)

As Obama once said: "Never underestimate Joe Biden's ability to fuck everything up."


Cute duck via Soothsayer.





Recent Comments
sockamster-rookie poster: "291 When are we finally going to bring back mental ..."

Axeman: "[i]Joepocalypse Now.[/i] ..."

Ben Had: "Fuck mailroom issues. No one in the whole fucking ..."

Axeman: "Your injecting some cleavage into this thread. Po ..."

[/i][/b]andycanuck (yikp0)[/s][/u]: "This thread is about to go tits up. ------------- ..."

Notorious BFD: "[i]The Joepocalypse is here.[/i] Sure as f*uck ..."

mpfs: "When are we finally going to bring back mental ins ..."

Joe XiDen: "Speaking of the slowing economy, one of my friends ..."

Marcus T, Deus Vult: ""Posted by: Minnfidel at May 25, 2022 07:32 PM (Gw ..."

Drink Like Vikings: "Uhhh, huh huh. He said Woodcock. ..."

Axeman: "The Joepocalypse is here. ..."

Marcus T, Deus Vult: "There was RUMINT the school had resource officers ..."

Recent Entries
Search


Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Top Top Tens
Greatest Hitjobs

The Ace of Spades HQ Sex-for-Money Skankathon
A D&D Guide to the Democratic Candidates
Margaret Cho: Just Not Funny
More Margaret Cho Abuse
Margaret Cho: Still Not Funny
Iraqi Prisoner Claims He Was Raped... By Woman
Wonkette Announces "Morning Zoo" Format
John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia
World Muslim Leaders Apologize for Nick Berg's Beheading
Michael Moore Goes on Lunchtime Manhattan Death-Spree
Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears
Liberal Economists Rue a "New Decade of Greed"
Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility
Intelligence Officials Eye Blogs for Tips
They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan
Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq
Leather-Clad Biker Freaks Terrorize Australian Town
When Clinton Was President, Torture Was Cool
What Wonkette Means When She Explains What Tina Brown Means
Wonkette's Stand-Up Act
Wankette HQ Gay-Rumors Du Jour
Here's What's Bugging Me: Goose and Slider
My Own Micah Wright Style Confession of Dishonesty
Outraged "Conservatives" React to the FMA
An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear
The Story the Rightwing Media Refuses to Report!
Our Lunch with David "Glengarry Glen Ross" Mamet
The House of Love: Paul Krugman
A Michael Moore Mystery (TM)
The Dowd-O-Matic!
Liberal Consistency and Other Myths
Kepler's Laws of Liberal Media Bias
John Kerry-- The Splunge! Candidate
"Divisive" Politics & "Attacks on Patriotism" (very long)
The Donkey ("The Raven" parody)
Powered by
Movable Type 2.64