We are in Stage 2 of an Economic Depression

We are in Stage 2 of an Economic Depression

By Investment Watch Blog

A Recession Is Not the Problem, a Deep Inflationary Depression Should Be a Far Greater Concern

Persistently massive inflows of cash into a key Federal Reserve facility are in large part being driven by a bank liquidity regulation change from last year, a report from the New York Fed said Friday.

Bank of America Warns of Looming Unemployment Shock

Bank of America (BofA) analysts are warning of a collapsing U.S. labor market and a potential rise in unemployment next year.

They also recommended selling a stock market rally ahead of the likely surge in job losses.

“Bears (like us) worry unemployment in 2023 will be as shocking to Main Street consumer sentiment as inflation in 2022,” stated BofA strategists led by Michael Hartnett, who revealed that global equity funds were having their biggest weekly outflows in three months.

“We’re selling risk rallies from here,” he said, reiterating his preference for bonds over equities in the first half of 2023.

 

Original source: https://www.investmentwatchblog.com/we-are-in-stage-2-of-an-economic-depression/