Posted by JAFO
a resident of Old Mountain View
on Nov 3, 2022 at 4:20 pm
JAFO is a registered user.

Just an observation,

With 300 variants spreading worldwide, do you think we can vaccinate or treat our way out of Covid?

I have been saying it over and over again, the fact that Covid removed 4,000,000 workers from the U.S. is causing a permanent labor shortage.

Resulting in wage inflation, which forced price inflation.

Which forces the FED to raise interest rates, which is forcing a lot of business leveraged to have to pay off debt, they cannot afford to pay the interest. Or worse if they are overleveraged, they are OUT OF BUSINESS.

Same goes with the people, they are being FORCED to pay off debt, and not consider taking any more on.

There goes the housing market, the Auto market, the stock market, and a lot of discretionary purchases. 2023 is going to be a VERY bad year.

And banks are going to be in REAL trouble because without any NEW loans, and values dropping on older loans, they are stuck with TOXIC ASSETS again. But NO BAIL OUT this time, because they did not FIX THEIR OWN PROBLEMS before.

The Stock market IS GOING TO FEEL IT THE WORST, SO MANY BUSINESSES TOOK OUT LANS TO BUY BACK STOCK, TO STABILIZE THEIR STOCK PRICES. But the prices are still going down. if stocks were used as collateral for loans, those loan will be pulled, and the stocks will be on a fire sale, like housing and stocks during 2006-2009.

Time to finally get all bubbles fixed, and to NEVER let them happen again.