The Two-Year Recession Starts Now
Butter my biscuit and call me Shirley
Here’s a thought experiment:
You’re an investment analyst and a client is on the phone asking if we’re in a recession or not. You have to answer “truthfully,” but you also don’t want to scare them off, so you’ll need to massage the truth just a teensy tiny bit.
Why not take a page out of our Federal Reserve’s playbook and tell them, “oh, recession? It’s too soon to tell” or “unfortunately the data is mixed.”
Your boss will love you for this. If you’re working at Goldman Sachs they’ll even give you a bonus for not spooking the clients!
I’m not going to do that today. I’m going to give it to you straight: we are in a recession, it started this year, and will last at least one more.
Here’s what you should know and how to prepare.
You May Ask Yourself: How Did I Get Here?
The easy answer is to blame the coronavirus. And, to be fair, the virus has been a major factor in the economic slowdown, but the real issue was how the Federal Reserve handled the situation.
The Fed said inflation was “transitory.”
LOL.
