If you look at past financial and economic crises, what is the common denominator?
That’s why we talk so much about debt on these pages.
When the August jobs report came out earlier this month, much was made over the “solid” wage growth. Average hourly wages increased by 2.9% on an annualized basis.
Peter Schiff raised an important question when the report hit the news cycle. Is this wage growth indicative of a growing economy? Or is it simply a sign of inflation?
“The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time and still retain the ability to function.” – F. Scott Fitzgerald
On the one hand, things in the economy look pretty good. The mainstream pundits sure seem to think so. They fill the financial news shows with daily doses of good cheer. But is everything really sunshine and roses? Or should we be holding some opposing ideas in our minds as well?
Saturday, Sept. 15, was the 10th anniversary of the Lehman Brothers bankruptcy. Many people consider it the seminal event of the 2008 financial crisis.
In his latest podcast, Peter Schiff said as we look back at the anniversary, we should realize that the next crisis is going to be worse. In fact, the next economic hurricane is going to be a category five.
The US stock markets had another big day Wednesday with a number of the indexes, including the Nasdaq and the S&P 500, in record territory. So, what’s with the recent move up in US stock markets?
Donald Trump and a lot of Republicans have been taking credit for it, saying their economic policies are causing a boom. But in his latest podcast, Peter Schiff thinks the real impetus for this leg up is the dovish tone of recent Federal Reserve comments.
We are well into the third quarter of 2018. In our perpetual fast-forward world, analysts are already looking toward Q4. What will the last quarter of the year bring?
It’s virtually impossible to predict the short-term. Who knows what kind of political event, natural disaster or emerging trend will drive the markets over the next few months?
Of course, we can’t predict the future at all. We’re not fortune tellers or Old Testament prophets, but as Dan Kurz notes in his latest post at DK Analytics, it is a bit easier to project what will happen to the economy in the long run because we can clearly see the big-picture dynamics and fundamentals underlying it. As he put it, he’s less sure where America is headed in Q4 than ‘down the road’ in general. The whole thing (political, financial, economic) could fall apart at any time.”