R
Ridgerunner
Guest
I can’t argue against the proposition that we’re overdue a recession, notwithstanding that the DOW is up about 1,000 points since Trump got elected.Not even close.
There will be a recession, but not for the reasons stated here. There has been a real recovery in the last 10 years and a correction is due for all this printing of money, low interest rates and bailouts. But after this the economy will be booming if Trump can deregulate unnecessary regulations and lower the corporate tax rate.
But there is something to consider. It’s a little unclear to me whether or not we have been in a “recession” for some years now. I don’t mean in terms of prices or what corporations are making or what the top 1% are making or have.
I mean in terms of what average workers get in terms of wages and salaries. But for cheap foreign imports of goods, would we perhaps be in an very extended period of “stagflation” in which wages stagnate while inflation further decreases buying power?
Supposedly the market is an indicator of the future. But it’s more an indicator of peoples’ expectations about future corporate profitability. Lowering taxes automatically increases retained earnings. But I would say Trump and congress are going to have a tough time making the reality meet the expectations.