Alarm! The Global Credit Correction Is Here! US Gross Domestic Income Shrinking Awfully Fast As Liquidity Evaporates

Confounded Interest ^ | 07/16/2023 | Anthony B. Sanders

[Kaiser8408a]

Alarm!

The global credit correction has arrived. Or as Bill Paxton said in Twister, “It’s already here!”

The question is, how far into the economy will it extend?

US Gross Domestic Income YoY is still growing strong at 4.5%, but shrinking really fast as Fed monetary stimulypto wears off.

S&P Global Ratings’ Credit Cycle Indicator – forward-looking measure of credit conditions—shows that the momentum of the correction continues.

Source: S&P Global Ratings

Speaking of cycles … I give you the ultimate cycle killer, the US Federal Reserve.

[Kaiser8408a]

wow.

[AndyJackson]

I don't get this. I borrow $200k, accumlating debt repayment obligations of $300k to buy a car that would sell for $100k [it's da gubmint doing the buying here, remember]. What is my GDI? $400k or -$200k=$100k-$300k

By the way it's not a truck that enables me to get to job sites. I use it to drive to bars and strip clubs and rope in hot guys [hey were gender fluid here].

But according to modern economics experts buying flashy toys and dates is all part of GDI.

[brownsfan]

With all the alarms and warnings, if I heeded them all, I’d have built an underground bunker and locked myself away by now.

[vg0va3]

Here is much of your liquidity that is stabilizing the market.

Reverse Repo

the BTFP.

[Obadiah]

Ditto that. Honestly, it is so wearisome how everything is now one way or another a crisis. I have become inured to the constant screeching of imminent crisis.

[PGR88]

Treasury’s June report indicates rapidly falling tax revenues - and a budget deficit that is nearly $1.4 Trillion

https://www.fiscal.treasury.gov/files/reports-statements/mts/mts0623.pdf

[SteveH]

i do not trust my understanding of any of this. plain enlish?

[GingisK]

The British are coming. The sky is falling. Everyone to get from street.

[aquila48]

ALARM!! EMERGENCY! WE’RE DOOMED!

I’m curious, since this guy Sanders, is all into predicting what’s going to happen to the economy and the market, has he made billions for himself using his predictions?

[SomeCallMeTim]

From what I see… tax receipts are lower this year than last year, while spending up. Result: YTD deficits are far higher than last year

[spintreebob]

Are these numbers before or after inflation.
Also, which population groups are most affected?

People with stocks are most affected by stock market prices.

People at the other end with no savings are most affected by super market prices.

[lurk]

IOW that $5T in paper dollars that Nancy printed out of thin air over the last five years is being metabolized by the economy, and there is less funny money floating in the air for the banking government business corruption class.