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Recession

The Boulevard of Broken Dreams

Marin Katusa | Equities.com |

By Marin Katusa

 

Even with a new steering committee focused on a potential Chinese reopening...

 

President Xi’s absolute control of the Politburo in China allows as much Zero Covid policy as desired. Regardless of the...


Global Wealth Destruction (And Then What?)

Marin Katusa | Equities.com |

 

Capital moves at lightning speed in today’s interconnected world. And that’s where bear markets and recessions create spillover effects worldwide.

I’m going to show you a scary chart that plots the combined market capitalizations of the world’s stock markets.

You can see that since the Tech Bubble popped, we have been on an incredible global run. All thanks in large part to relatively loose ...


This Recession Indicator Just Lit Up — What Does It Mean?

Stephen McBride | Equities.com |

What's an inverted yield curve... and why does it matter?


Fed Chair Jerome Powell Warns Recovery May Falter Without Further Government Stimulus

AP News | Equities.com |

Strong financial support from the government and the Federal Reserve have spurred a solid recovery from the pandemic recession, but the rebound may falter without further aid, Fed Chair Jerome Powell warned Tuesday.

Powell said that government support — including expanded unemployment insurance payments, direct payments to most U.S. households and financial support for small businesses — has so far prevented a recessionary “...


Japan's Economy Shrinks at 27.8% Annual Rate, Worst Contraction on Record

AP News | Equities.com |

Japan’s economy shrank at annual rate of 27.8% in April-June, the worst contraction on record, as the coronavirus pandemic slammed consumption and trade, according to government data released Monday.

The Cabinet Office reported that Japan’s preliminary seasonally adjusted real gross domestic product, or GDP, the sum of a nation’s goods and services, fell 7.8% quarter on quarter.

The annual rate shows what the number would have been if continued for a year.

...


Minneapolis Fed President Kashkari Says Economy Would Benefit From 4-6 Week Shutdown

Reuters | Equities.com |

The U.S. economy could benefit if the nation were to “lock down really hard” for four to six weeks, a top Federal Reserve official said on Sunday, adding that Congress can well afford large sums for coronavirus relief efforts.

The economy, which in the second quarter suffered its biggest blow since the Great Depression, would be able to mount a robust recovery, but only if the virus were brought under control, Neel Kashkari, president of the Minneapolis Federal Reserve Bank, told CBS’s “Face the Nation.”


US GDP Collapses in Q2 by 9.5%, Annualized Fall of 32.9%; Steepest Pace Since Depression

Reuters | Equities.com |

The U.S. economy contracted at its steepest pace since the Great Depression in the second quarter as the COVID-19 pandemic shattered consumer and business spending, and a nascent recovery is under threat from a resurgence in new cases of coronavirus.

Gross domestic product collapsed at a 32.9% annualized rate last quarter, the deepest decline in output since the government started keeping records in 1947, the Commerce Department sai...


Restaurants' Struggles Felt Throughout Supplier and Vendor Communities

AP News | Equities.com |

Restaurants helped revive the U.S. economy after the Great Recession of 2007-2009.

This time? Don’t count on it. As the nation struggles to rebound from a now-resurgent coronavirus, restaurants seem much less likely to deliver an economic boost. They’ve suffered a heavy blow from lockdowns and occupancy restrictions, and it’s unclear how readily Americans will return en masse to dining out.

Consider the Barrel Room, a San Francisco wine bar and re...


IMF Forecasts US Economy To Contract 6.6% in 2020

AP News | Equities.com |

The International Monetary Fund predicted Friday that the U.S. economy will shrink 6.6% this year, pounded by the coronavirus and the lockdowns meant to contain it.

The grim forecast is actually an upgrade from one the IMF made last month when it foresaw the American economy contracting 8% in 2020.

But the 189-country lending organization warned that the U.S. economy faces downside risks from a resurgence in COVID-19 cases.

The U.S. economy vi...


Stocks Ease Back Thursday; S&P 500 Down 0.3%

AP News | Equities.com |

Wall Street stumbled on Thursday after a report showed layoffs continue to sweep the country at a stubbornly steady pace, one of several mixed reports to highlight the uncertain path ahead for the economy.

The S&P 500 slipped 0.3%, following up on declines across Europe and Asia, as a worldwide rally faded. Stocks in China fell particularly sharply after a report showed shoppers there are slow to spend even though its economy returned to growth. Treasury yields also lost ground in a sign of increased caution.


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