Stock market’s eerie parallels to September 2007 should raise recession fears

Most Democrats are intensely religious to the point of cult zealotry, praying day and night for the USA stock market and economic to collapse, that black, Latino and women's unemployment skyrockets and ideally N. Korea launches nuclear missiles at Hawaii - anything that might harm President Trump's re-election and punish the USA and Americans for our existence.

Another thread off the rails.

We have a MarketWatch article talking about inverted yield curves and conditions today similar to 2006-2007, the Fed today making a statement that is not unlike what was made back in 2006, and somehow this is sitting in the ‘government spending and debt’ area of the forums.

But the real problem is the expectation that the Fed will all of a sudden predict a recession, when they tend to not really do that. Not like the way the MarketWatch article is implying.

Besides, we are overdue for a recession anyway... and it does not have to be a 2007-2008 level fiasco, just a recession that is a normal part of our economic cycle.

bearpoker said:

The "mean" jab was at Trump, not you.
Schumer offered Trump money for the wall in return for immigration reform and Trump turned him down. Trump is the unreliable negotiating partner, not Schumer. Democrats have been ready to deal with Trump on infrastructure and Trump is the one who keeps backing off, using a variety of excuses.The latest is because the Democrats are investigating him.Trump to Democrats: No infrastructure without trade deal - POLITICO Earlier it was because there He treats infrastructure like a carrot. Like a treat for the Democrats. He's a totally unreliable negotiating partner as he constantly demonstrates.

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Perhaps you are correct. Still think that nothing major will be passed in 2020. Hope I am wrong. Infrastructure is something the country truly needs.

Capitalism works fine except for recessions. Like a woman saying her marriage works fine except for the wife beating.

OrphanSlug said:

Another thread off the rails.

We have a MarketWatch article talking about inverted yield curves and conditions today similar to 2006-2007, the Fed today making a statement that is not unlike what was made back in 2006, and somehow this is sitting in the ‘government spending and debt’ area of the forums.

But the real problem is the expectation that the Fed will all of a sudden predict a recession, when they tend to not really do that. Not like the way the MarketWatch article is implying.

Besides, we are overdue for a recession anyway... and it does not have to be a 2007-2008 level fiasco, just a recession that is a normal part of our economic cycle.

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Indeed. Recessions are painful but necessary and good. They correct market inefficiency.

joko104 said:

Most Democrats are intensely religious to the point of cult zealotry, praying day and night for the USA stock market and economic to collapse, that black, Latino and women's unemployment skyrockets and ideally N. Korea launches nuclear missiles at Hawaii - anything that might harm President Trump's re-election and punish the USA and Americans for our existence.

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Strawman

99percenter said:

Stock market’s eerie parallels to September 2007 should raise recession fears - MarketWatch

Looks like we are headed for another gop induced recessions.

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What a great example of propaganda and disinformation.

Stock markets can never cause recessions and never have.

Intelligent educated people know that the stock market has set continual record highs during some previous recessions. They also know that some of the worst stock market crashes occurred while the US economy was growing each and every quarter.

For example, while the economy was growing at rates as high as 12.5% per quarter, the stock market lost 46% of its value.

In a more recent occurrence, the economy averaged 2.5% per quarter during the entire time the stock market lost 42% of its value and took more than 2 years to recover.

Intelligent educated people know there is no relationship whatsoever between the stock market and the economy and the stock market is not an indicator of anything other than where investors are putting their money in terms of economic sectors.

Mircea said:

Intelligent educated people know there is no relationship whatsoever between the stock market and the economy and the stock market is not an indicator of anything other than where investors are putting their money in terms of economic sectors.

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CriticalThought said:

Indeed. Recessions are painful but necessary and good. They correct market inefficiency.

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To your point, they are going to happen anyway. The amplitude of the economic cycle, or the severity of a recession, becomes damn near dependent on the condition and quality of policy. Namely fiscal, monetary, and trade policy. Having a recession is not the problem, the reasons for a recession being such a mess points to those in charge... even if they are sleeping at the wheel, something the Fed and Congress is known well for.

The good news is recessions, or really any economic headwind, causes the voter to shop for new leadership.

CriticalThought said:

Indeed. Recessions are painful but necessary and good. They correct market inefficiency.

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Yes. They are the coffee, aspirin, Alka-Seltzer, stomach pump for an inebriated, overdosed market. There is nothing logical about the emotional buy-sell in the market except for the somewhat more often than not but few top-tier professionals and insiders. Otherwise, the market wouldn’t be so erratic and neither would we get so drunk and drugged as to need special attention.