MSM Thinks It’s Good News! We Are in a Recession After All

2
315

The stock market is down 560 points as of 3:30 pm on the news that we are definitely in a recession. T It will be difficult to make this into good news, but the media is making a gallant effort to try.

After pretending for months that there is no recession or serious inflation, the media has flipped the script. They now want to convince you a recession is a good thing. Washington Post published an article that tells you seven ways a recession is good for you financially (as stocks plummet today). You just can’t make this stuff up.

If you think Joe Biden is a good President, you havenโ€™t seen your 401k lately, havenโ€™t been to the grocery store recently, nor had any home repair needs, and donโ€™t have eyes. Maybe youโ€™re brain misfired. This is the worst administration in our lifetime. Itโ€™s even trying to start a world war.

The combined GDP and GDI data were released today. The GDP/GDI was down -0.4% in Q1 and -0.3% in Q2. This means the economy was in a recessionย during the year’s first half. Janet Yellen changed the definition of recession to fool distracted Americans, but this cements the fact that we are in a recession.

The Biden financial experts told us to ignore the GDP and watch the GDI. So here we are, and it is a recession.

Beginning in mid-June, we saw a significant bear market rally in stocks. But the recent declines have wiped out those gains and more. For instance, the Dow jumped 14% during the 2-month rally. By the close on Friday, Sept. 23, it was once again down 20% from its all-time high. That same day, the NASDAQ closed just 2% off its June low after a 23% rally, Zero Hedge reported.

Asย WolfStreetย points out, the collapse of this bear market rally was predicated on the fantasy of a Federal Reserve pivot.

The bear-market rally happened because markets โ€“ meaning folks and algos playing in them โ€“ had this fabulous reaction to the Fedโ€™s aggressive rate-hike scenario: They began fantasizing about a Fed โ€œpivotโ€ and about rate cuts and some even about QE all over again. Asset prices began to jump, and yields began to fall.โ€

WolfStreetย points out that this bear market rally is reminiscent of the dot-com era. During a similar two-month rally from May 27 through July 17, 2000, the NASDAQ jumped by 33% without ever getting back to its old high. Ultimately, the NASDAQ collapsed by 78%.

That bear-market rally in the summer of 2000 suckered a lot of people back into the market, thinking that stocks would be going to the moon again, and they got crushed.โ€

The difference between then and now is we haveย a CPI over 8%.

Wolf Street believes the Feds will tank the economy to get inflation to 2%.

Everything is suffering, housing, food, and car sales. The auto companies are struggling.

Kentucky Ford is filling up parking lots and ammunition lots for Ford trucks that canโ€™t be finished. Itโ€™s not just the shortage of semiconductor computer chip issues arising from the supply chain problem. Itโ€™s badges, emblems, and other parts.

Inflation is hitting them too.

Itโ€™s not only Ford but also Toyota and other car companies.


Subscribe to the Daily Newsletter

PowerInbox
5 1 vote
Article Rating
2 Comments
Most Voted
Newest Oldest
Inline Feedbacks
View all comments