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Recession Rumbles Grow Louder as Impact of Economic Stimulus Fades
https://www.barrons.com/ ^ | March 11, 2022 | Randall W. Forsyth

Posted on 03/14/2022 3:43:50 AM PDT by RomanSoldier19

There will be growth in the spring, to cite once again Chauncey Gardiner, the supposed savant in the 1979 satire Being There, who actually was Chance, the gardener. Chauncey’s dimwitted utterances somehow were taken as incredibly profound by the powerful Washington elite, and through a series of improbable events, he would become the president’s key adviser on how to cure the nation’s ailing economy.

The real presidents in that era wouldn’t have done any worse by listening to Chauncey rather than to their actual advisers. Back in the fall of 1974, the Ford administration assembled an all-day conference on solutions to the soaring prices besetting the nation. The initial answer—WIN buttons, for Whip Inflation Now—somehow had failed to do the trick, so the White House cast about for alternatives.

The joke was that, unbeknownst to all the assembled experts, the U.S. already was nearly a year into the recession that had begun in November 1973 and wouldn’t end until March 1975. While that escaped the worthies in Washington, Wall Street certainly noticed. Stocks were deep into a truly vicious and protracted bear market

(Excerpt) Read more at barrons.com ...


TOPICS: News/Current Events
KEYWORDS: depression; recession

1 posted on 03/14/2022 3:43:50 AM PDT by RomanSoldier19
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To: RomanSoldier19

By allowing deadbeat tenants to live rent-free, paying tenants have been forced to pay higher rents.


2 posted on 03/14/2022 4:10:07 AM PDT by Brian Griffin
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To: RomanSoldier19

Housing prices have become insane in many places.


3 posted on 03/14/2022 4:12:20 AM PDT by Brian Griffin
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To: RomanSoldier19

The economy has gone through a Hunter Biden-like binge.

Recovery is via sleep and resolve upon awakening.


4 posted on 03/14/2022 4:15:59 AM PDT by Brian Griffin
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To: Brian Griffin

States with property taxes are cool with that.


5 posted on 03/14/2022 4:33:17 AM PDT by mewzilla (We need to repeal RCV wherever it's in use and go back to dumb voting machines.)
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To: RomanSoldier19

The day after Ford’s suggestion that we wear WIN buttons, guys on the floor of the NYSE sported LOSE buttons!


6 posted on 03/14/2022 5:09:17 AM PDT by Roccus (First we beat the Nazis........Then we defeated the Soviets....... Now, we are them.)
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To: Brian Griffin

Do we even have enough housing for Americans and all the illegal border crossers they keep letting in by the 10s of thousands?


7 posted on 03/14/2022 5:10:04 AM PDT by virgil (The evil that men do lives after them )
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To: RomanSoldier19

This is the Seventies all over again.

Only worse.

And without the fun bits.


8 posted on 03/14/2022 5:13:04 AM PDT by mewzilla (We need to repeal RCV wherever it's in use and go back to dumb voting machines.)
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To: virgil

No. Not public housing, anyway.

And in my neck of the woods there are waiting lists for all of the Section 8 housing.

Wonder what percentage of Sec 8 housing is occupied by illegal aliens...


9 posted on 03/14/2022 5:14:51 AM PDT by mewzilla (We need to repeal RCV wherever it's in use and go back to dumb voting machines.)
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To: Brian Griffin

Housing prices have become insane in many places.

The abbreviated supply of houses for sale, and the ridiculously low mortgage rates, both helped to inflate home prices by 20% in a single year. A totally sustainable model (sarc).

The push for cheaper credit and longer term loans is approaching some sort of weird credit end-game. I recently saw some banks are now offering 40 year (!!) home mortgages. This sort of term will guarantee almost none of the principal will be paid as interest is front-loaded o mortgages.


10 posted on 03/14/2022 5:15:50 AM PDT by Flick Lives (The CDC. Brought to you by Pfizer)
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To: RomanSoldier19

Excess money supply drives up prices, the definition of inflation.

Printing money devalues the whole of the supply.

Didn’t these folks read Smith or anything other than the comic books?


11 posted on 03/14/2022 5:23:08 AM PDT by Manly Warrior (US ARMY (Ret), "No Free Lunches for the Dogs of War" )
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To: RomanSoldier19

A fine Example is Colorado where housing prices are forcing many lower income workers out of their current housing and into less reputable situations or worse onto the street or living in vehicles. If you’ve got a couple of six figure incomes in your household your ok, for now. The situation is bad and only shows signs of getting worse.


12 posted on 03/14/2022 5:35:36 AM PDT by The Louiswu (The times they are a changin. )
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To: RomanSoldier19

Follow the logic, President Biden.
The most advanced economies in the world,the G7 nations, less the US, had an average trailing 12 month inflation rate of 4%, with Japan as low as less than 1% and neighbor Canada and the UK as high as 5.1% and 5.8% percent, respectively.
All 7 nations have had common economic exposure to the covid menace and escalating energy prices from the Ukraine war impacting their economies. Yet, our US 7.9 % rate is close to double the average 4% inflation rate of our 6 G7 partners with our rate over the last trailing 3 months running at 8.5%.
The difference, unlike the other 6, is that we came off a spending blowout in 2021 with a record breaking 2.7 trillion annual deficit led by a 1.9 trillion covid relief vote buying bill, a 1.1 trillion infrastructure bill that is more subsidy than infrastructure, and the latest yet be spent 1.5 trillion spending bill recently passed by the House and the Senate may also pass (and all of this without the 5 trillion Build Inflation Back Better spending orgy bill that went down in flames)
To paraphrase a bit: Perhaps, just perhaps, it’s the spending, stupid.


13 posted on 03/14/2022 5:36:38 AM PDT by chuckee ( )
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To: RomanSoldier19

It was not an economic stimulus. It was the creation of new money that diluted the value of existing currency and gave a false sense of prosperity.

The numbers go up all around, and intellectually challenged people think that means the economy is improving.

It was inflationary and not a stimulus. I resent politicians taking us for stupid idiots.


14 posted on 03/14/2022 5:55:47 AM PDT by I want the USA back (Government is to be feared much more than the chicom virus.)
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To: I want the USA back

The stimulus payments were like heroin dealers giving out just enough to get the new people hooked. Middle class types that normally would never get welfare would now get addicted to Uncle Sugar’s heroin and not be able to say no in the future.


15 posted on 03/14/2022 6:01:53 AM PDT by BiglyCommentary
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To: RomanSoldier19

Are you kidding me?

The number of folks living paycheck to paycheck has gone up 12% since April and is nearly 2/3 of the country at this point…

This strong economy lie trying to prop up a walking vegetable abs illegitimate administration is despicable.


16 posted on 03/14/2022 6:06:40 AM PDT by HamiltonJay
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To: RomanSoldier19

A month before the election, your $10,000 stimulus checks arrive with a ballot already filled for the marx-o-crats.


17 posted on 03/14/2022 6:49:46 AM PDT by dynachrome ("I will not be reconstructed, and I do not give a damn.")
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To: Brian Griffin

It’s red hot in Raleigh NC. All of the northerners from the NE and California are moving here with their big money payouts. These idiots are paying 30% over asking prices.


18 posted on 03/14/2022 7:26:30 AM PDT by DownInFlames (P)
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To: Manly Warrior; chuckee

Read? They don’t read anything, including bills they vote for.

Yeah, it could be the spending. /s

Our time for recession is long past due. It has been avoided by this orgy of spending and the FUD propping up the market with minuscule interest rates. There was some real growth with Trump with the onshoring of money and a little growth.

Then there is this. In Monopoly, someone wins when all the others are indebted because someone else has all the money. Kinda like today when the competition is who has the most hundred billions. Oligarchs are everywhere.

When labor can’t afford the prosperity they make why make it?

If inflation is too many dollars chasing too few goods isn’t recession or depression too few dollars chasing too many goods? Things have hit unaffordable to me, they are at least unreasonable. For example, a 12 slot Siemens breaker box was $50 in 2019, it is now $170. A tote of Roundup was about $4,000 last year. It is now $15,000. Fuel, well we all know that story. How? Why? We can still get all of these things so they are not in short supply. The lumber yard still has plenty of lumber yet the price has tripled.

When does the stock market catch up to inflation with its own inflated values owing to inflated profits?


19 posted on 03/14/2022 8:24:45 AM PDT by Sequoyah101 (Politicians are only marginally good at one thing, being politicians. Otherwise they are fools.)
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To: chuckee

Great Post!!!


20 posted on 03/15/2022 3:47:59 AM PDT by Pagey (Valerie Jarrett. She IS STILL in DC creating More Havoc on This Country. )
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