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bronxiteforever

(9,287 posts)
Mon Nov 4, 2019, 10:42 AM Nov 2019

The 'mother of all bubbles' could blow up the economy if profits don't improve, warns Blackstone


The ‘mother of all bubbles’ could blow up the economy if profits don’t improve, warns Blackstone strategist
MarketWatch
By Shawn Langlois
Published: Nov 4, 2019 6:56 a.m. ET

Joseph Zidle...“At the end of any economic cycle, we often get warnings that appear to be unrelated,” he writes in a note. “It’s in hindsight that we realize that they were not at all random.” We saw this during the housing bubble, he added, and we’re seeing it now.

Among the recent troubles he thinks are connected are repo market woes, negative-yielding debt, global trade conflicts and collapsing manufacturing. And every cycle ends with excess.

The “mother of all bubbles” in the sovereign debt market, Zidle says, is the catalyst that will likely trigger the next recession. He expects that to happen between mid-2020 and the end of 2021.

https://www.marketwatch.com/story/the-mother-of-all-bubbles-could-blow-up-the-economy-if-profits-dont-improve-warns-blackstone-strategist-2019-11-04?mod=home-page
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The 'mother of all bubbles' could blow up the economy if profits don't improve, warns Blackstone (Original Post) bronxiteforever Nov 2019 OP
The Trump Slump (or Republican Recession) is coming. CaptainTruth Nov 2019 #1
Sovereign Debt Markets. bronxiteforever Nov 2019 #2

CaptainTruth

(6,546 posts)
1. The Trump Slump (or Republican Recession) is coming.
Mon Nov 4, 2019, 11:49 AM
Nov 2019

Supply-side economics combined with tariffs is a bad combination.

bronxiteforever

(9,287 posts)
2. Sovereign Debt Markets.
Mon Nov 4, 2019, 12:09 PM
Nov 2019

If the federal government debt runs so high during “good times”, what will the debt do when the recession hits and government tax receipts fall even further and expenditures increase?

IT45 has already cut federal revenue with huge corporate huge tax cuts on their income. China is ditching our paper, I just don’t think we are prepared for a recession with a paralyzed government. I could be wrong and I readily profess no expertise. I would love to hear from the DU economic pros!

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