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Blackrock’s Dire Forecast For 2023 And FAANG’s Loss Of >$3 Trillion In 2023 (M2 Money Velocity Near Lowest In History, US Yield Curve STILL Inverted)
Confounded Interest ^ | 12/11/2022 | Anthony B. Sanders

Posted on 12/11/2022 8:38:57 AM PST by Kaiser8408a

Blackrock has a grim presentation on investing in 2023. Particularly with regards to The Federal Reserve and their ability to stave-off a recession (comin’ at you!).

Central bankers won’t ride to the rescue when growth slows in this new regime, contrary to what investors have come to expect. They are deliberately causing recessions by overtightening policy to try to rein in inflation. That makes recession foretold. We see central banks eventually backing off from rate hikes as the economic damage becomes reality. We expect inflation to cool but stay persistently higher than central bank targets of 2%.

Those companies — known along with Apple Inc., Netflix Inc. and Google parent Alphabet Inc. as the FAANGs — led the move to a digital world and helped power a 13-year bull run. And FAANG drawdown have reached over $3 trillion.

FAANGs (Meta, Amazon, Apple, Alphabet, Netflix) are getting clobbered in 2022.

BUT after the 25% surge in M2 Money in 2020 and 2021, we saw M2 Money VELOCITY crash and burn to its lowest level in history. Which means the “bang for the buck” for printing more money is negligible.

Of course, big tech firms got caught influencing the 2020 Presidential election (see Musk’s release of Twitter files) and engaged in restriction of the 1st Amendment (Freedom of Speech). How much will that impact FAANG stocks going foward?

And yes, the US Treasury yield curve is inverted pointing to a recession in 2023.

And yes, apparently Biden was complicit in the Twitter fiasco.

Shotgun Joe! Shooting down freedom of speech.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Government; Politics; Society
KEYWORDS: biden; blogpimp; brownsultrafan; clickbait; economy; musk; retread; tech
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I agree that The Fed may keep hiking rates even in the face of a Biden-created recession.
1 posted on 12/11/2022 8:38:57 AM PST by Kaiser8408a
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To: Kaiser8408a

Real estate bubbles and China go boom?

There are numerous bad situations lining up at once…


2 posted on 12/11/2022 8:40:46 AM PST by EEGator
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To: EEGator

“There are numerous bad situations lining up at once…”

As in A Perfect Storm, IMO.


3 posted on 12/11/2022 8:44:17 AM PST by laplata (They want each crisis to take the greatest toll possible.)
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To: laplata

Aye.


4 posted on 12/11/2022 8:47:18 AM PST by EEGator
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To: EEGator

“There are numerous bad situations lining up at once…”

**************

What happens when the rising costs of necessities (food, shelter, energy, transportation, health, etc.) put the squeeze on what little disposable income is left? Consumption will have to decline leading to all manner of economic problems down the road. Just saying.


5 posted on 12/11/2022 8:48:11 AM PST by Starboard
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To: laplata

No problemo. We’ll just spend our way out if it. After all, we can print prosperity, can’t we?


6 posted on 12/11/2022 8:49:46 AM PST by Starboard
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To: Starboard
"What happens when the rising costs of necessities (food, shelter, energy, transportation, health, etc.) put the squeeze on what little disposable income is left? "

Just send everyone more government checks. Presto!! Fixed!

7 posted on 12/11/2022 8:52:15 AM PST by blam
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To: Kaiser8408a

The only thing that will end inflation and prevent the poverty we are facing soon, is to increase production of all goods.

As I have said before, every farm boy knows that when the family farm has a great growing season and a bumper crop, so do all of the other farmers and prices are low.

When the season was bad and no one has any, the prices are high.

All the FED can do is screw up man’s natural instinct to make things that are in short supply and reap the reward.

But socialists and communists do not understand economics.

But we expect them to cure our economy?


8 posted on 12/11/2022 8:52:34 AM PST by old curmudgeon (There is no situation so bad that the federal government can not make worse.)
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To: Kaiser8408a

Blackrock’s Dire Forecast brought to you by the policies that Blackrock employees, now working for CornPop, have been implementing since not one person in the White House, the Treasury Dept or any other Executive branch department has an effin’ clue as to what they’re doing.

As for the housing crash that is probably going to take place....I really wonder what an actual detailed analysis would uncover if one were to be done.

Low interest rates? Folks buying more than they can actually afford? Over building? Over development?

Oh wait, there’s not enough supply for the demand, right?

Or is it, there’s not enough supply for all the people that are moving away from liberal sh*tholes that they helped create? Is it that small towns and cities in the South and elsewhere, not designed to deal with the influx of people, are experiencing massive over development, rising taxes, traffic and congestion like they’ve never seen or imagined. All in the interest of...PROGRESS.

When in fact it’s greedy developers, greedy government officials that give away the kitchen sink with no input from the taxpayers, and even greedier city/county officials that approve everything and anything, as long as the incoming company promises more jobs than any of them could possibly fill.

Georgia, Newton County and Covington, Ga just sold the land and approved a facility, out of California(imagine that...because ONLY west coast liberals build stuff) that is going to build electric planes. Promising 1000 jobs....sure. Absolutely. Definitely going to happen. Got some crazy tax breaks in finishing this deal, too.

Folks only hear about it after the deal is done. You don’t say.


9 posted on 12/11/2022 8:54:10 AM PST by qaz123
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To: blam

Just send everyone more government checks.

**************

Well, the latest COLA is 8.7% for Social Security and the Civil Service Retirement System so that’s a start. ;)

Nobody in congress seems interested in talking about the national debt anymore. Its simply indefensible.


10 posted on 12/11/2022 8:59:10 AM PST by Starboard
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To: Starboard

“No problemo. We’ll just spend our way out if it. After all, we can print prosperity, can’t we?”.

Not when the dollar loses its position as World Reserve Currency and it’s headed that way. That will/would put a stop to printing money on the scale we’ve seen.


11 posted on 12/11/2022 9:21:02 AM PST by laplata (They want each crisis to take the greatest toll possible.)
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To: blam

Not when the dollar loses its position as World Reserve Currency and it’s headed that way. That will/would put a stop to printing money on the scale we’ve seen.


12 posted on 12/11/2022 9:22:18 AM PST by laplata (They want each crisis to take the greatest toll possible.)
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To: laplata

I knew I should have put a /sarc label on my post.


13 posted on 12/11/2022 9:25:29 AM PST by Starboard
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To: old curmudgeon

“But socialists and communists do not understand economics.

But we expect them to cure our economy”?

You are correct.

Biden and his handlers are doing nothing to help. They are relying on the Fed to fix things. They are letting it go to hell intentionally.


14 posted on 12/11/2022 9:26:51 AM PST by laplata (They want each crisis to take the greatest toll possible.)
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To: Starboard

No problemo. We’ll just spend our way out if it. After all, we can print prosperity, can’t we?

Ha ha. indeed! Mo Money! that’ll fix it. ;-)

If anything, the insane multi-trillion dollar stimie handouts of 2020-2021 were a textbook example that Keynesian economics does not work. Printing money does not create supply, it just drives up demand, and then price, for the few goods available.

Even if the Fed gets the current inflation rate to zero, never mind 2%, it will leave prices at an incredibly elevated level for necessities like food and energy.


15 posted on 12/11/2022 9:27:04 AM PST by Flick Lives (Cui bono)
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To: old curmudgeon
The only thing that will end inflation and prevent the poverty we are facing soon, is to increase production of all goods

But, but, but - the "economy" is opening new credit cards and consuming production from China!

What about all that?

(You forgot "increase extraction of natural resources")

16 posted on 12/11/2022 9:31:27 AM PST by Jim Noble (I feel my heart beat faster any place in the neighborhood of the Astor)
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To: Flick Lives

Debt is rapidly approaching $32 trillion. Note that nobody is talking about it anymore. It has become a non-issue for the politicians who got us into this mess.


17 posted on 12/11/2022 9:32:21 AM PST by Starboard
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To: Kaiser8408a

Teflon Joe.... but, Orange Man is to blame.


18 posted on 12/11/2022 9:32:41 AM PST by theyreallthesame
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To: Starboard

No problem. I understand. You know what’s going on.


19 posted on 12/11/2022 9:47:12 AM PST by laplata (They want each crisis to take the greatest toll possible.)
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To: Starboard

Debt is rapidly approaching $32 trillion. Note that nobody is talking about it anymore. It has become a non-issue for the politicians who got us into this mess.

It’s the Blue Whale in the room.


20 posted on 12/11/2022 9:55:04 AM PST by Flick Lives (Cui bono)
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