Are we officially in bear market territory? Is the economy “officially” in a recession or not? These are the types of questions you hear on every financial show, including the video below with Peter, but the question I would have for anyone asking, is does it matter? Do current market conditions need a name for people to be suffering? Do the owners of the $3 TRILLION DOLLARS of American wealth that has evaporated since January 1st care what it’s called, if it doesn’t end in zeros in their account?
Nonetheless, everyone wants to label the current economic condition something, so as Peter explains, as of right now, “officially” we are in “correction territory,” which means the market is at least 10% off its highs. Even though a ton of stocks are off far more than the 20% required to be an official “bear market,” since the market as a whole is “only” down 13% since January 1st, it’s not officially a bear market yet.
I’m not sure which is worse, how badly Obama was lying when he made the comment “Anyone who says there is trouble in the economy is peddling fiction,” or what I bet he does to paper over the problem just long enough tor him to get out of office, and then watch every American get financially wiped out. If he can, I have no doubt he’ll do the latter, however I’m not so certain that’s even possible at this point.
As we’ve all learned for 7+ years, the best way stop a recession from getting worse (temporarily), or the best way to dupe Americans into thinking there is a recovery happening, is to do what Barack has done, drop interest rates to zero and print yourself roughly $7 TRILLION dollars out of thin air.
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