Markets Are Down But That Doesn’t Mean The Economy Is

[skews13]

To listen to market observers, the Federal Reserve is sleeping as the house burns down. After the week began with sharp falls in Asian stock markets, American analysts began calling for emergency interest rate cuts from the Fed. Otherwise, they say, falling stock prices risked turning into an outright crash.

Arguably, investors are mapping their own pain onto the economy as a whole. Despite Monday’s sell-off, the macro-data from the broader economy doesn’t quite paint the picture of collapse that they’re drawing, at least not yet.

High-frequency data, like air travel and flight bookings, still indicate a US economy which remains in pretty good shape. Although there’s little question the economy has cooled down, it bears repeating that it’s coming off a period of very hot growth. Overall, the picture is of a gradual softening, not an imminent collapse. Consumer spending is still up. The U.S., in short, is not Canada.

Ironically, therefore, the widespread expectation that interest rates will be cut sharply is a self-defeating sentiment. It has driven bond yields down a lot, lowering borrowing costs – the expectation of cuts may actually take the pressure off central banks to get more aggressive with cuts. That is a good thing.

But the markets are not the economy, and investors’ pain is only their own. With the markets running less hot, the economy will benefit since capital, including houses, will become more affordable.

Opinion: Markets are down, but that doesn’t mean the economy is — The Globe and Mail

American markets opened on Monday deep in the red. But the truth is that share prices, while down a lot, didn’t quite collapse

apple.news

 

[Votto]

 

[jbrownson0831]

To listen to market observers, the Federal Reserve is sleeping as the house burns down. After the week began with sharp falls in Asian stock markets, American analysts began calling for emergency interest rate cuts from the Fed. Otherwise, they say, falling stock prices risked turning into an outright crash.

Arguably, investors are mapping their own pain onto the economy as a whole. Despite Monday’s sell-off, the macro-data from the broader economy doesn’t quite paint the picture of collapse that they’re drawing, at least not yet.

High-frequency data, like air travel and flight bookings, still indicate a US economy which remains in pretty good shape. Although there’s little question the economy has cooled down, it bears repeating that it’s coming off a period of very hot growth. Overall, the picture is of a gradual softening, not an imminent collapse. Consumer spending is still up. The U.S., in short, is not Canada.

Ironically, therefore, the widespread expectation that interest rates will be cut sharply is a self-defeating sentiment. It has driven bond yields down a lot, lowering borrowing costs – the expectation of cuts may actually take the pressure off central banks to get more aggressive with cuts. That is a good thing.

But the markets are not the economy, and investors’ pain is only their own. With the markets running less hot, the economy will benefit since capital, including houses, will become more affordable.

Opinion: Markets are down, but that doesn’t mean the economy is — The Globe and Mail

American markets opened on Monday deep in the red. But the truth is that share prices, while down a lot, didn’t quite collapse

apple.news

Right skrewey....keep telling us how great the economy is....

 

[Harpy Eagle]

To listen to market observers, the Federal Reserve is sleeping as the house burns down. After the week began with sharp falls in Asian stock markets, American analysts began calling for emergency interest rate cuts from the Fed. Otherwise, they say, falling stock prices risked turning into an outright crash.

Arguably, investors are mapping their own pain onto the economy as a whole. Despite Monday’s sell-off, the macro-data from the broader economy doesn’t quite paint the picture of collapse that they’re drawing, at least not yet.

High-frequency data, like air travel and flight bookings, still indicate a US economy which remains in pretty good shape. Although there’s little question the economy has cooled down, it bears repeating that it’s coming off a period of very hot growth. Overall, the picture is of a gradual softening, not an imminent collapse. Consumer spending is still up. The U.S., in short, is not Canada.

Ironically, therefore, the widespread expectation that interest rates will be cut sharply is a self-defeating sentiment. It has driven bond yields down a lot, lowering borrowing costs – the expectation of cuts may actually take the pressure off central banks to get more aggressive with cuts. That is a good thing.

But the markets are not the economy, and investors’ pain is only their own. With the markets running less hot, the economy will benefit since capital, including houses, will become more affordable.

Opinion: Markets are down, but that doesn’t mean the economy is — The Globe and Mail

American markets opened on Monday deep in the red. But the truth is that share prices, while down a lot, didn’t quite collapse

apple.news

When the market was booming the MAGA cult told us the market is not the economy.
Now that there is a small correction happening the market is 100% the economy.

In a couple weeks when the market is back, the MAGA cult will tell us again the market is not the economy.

 

[hadit]

To listen to market observers, the Federal Reserve is sleeping as the house burns down. After the week began with sharp falls in Asian stock markets, American analysts began calling for emergency interest rate cuts from the Fed. Otherwise, they say, falling stock prices risked turning into an outright crash.

Arguably, investors are mapping their own pain onto the economy as a whole. Despite Monday’s sell-off, the macro-data from the broader economy doesn’t quite paint the picture of collapse that they’re drawing, at least not yet.

High-frequency data, like air travel and flight bookings, still indicate a US economy which remains in pretty good shape. Although there’s little question the economy has cooled down, it bears repeating that it’s coming off a period of very hot growth. Overall, the picture is of a gradual softening, not an imminent collapse. Consumer spending is still up. The U.S., in short, is not Canada.

Ironically, therefore, the widespread expectation that interest rates will be cut sharply is a self-defeating sentiment. It has driven bond yields down a lot, lowering borrowing costs – the expectation of cuts may actually take the pressure off central banks to get more aggressive with cuts. That is a good thing.

But the markets are not the economy, and investors’ pain is only their own. With the markets running less hot, the economy will benefit since capital, including houses, will become more affordable.

Opinion: Markets are down, but that doesn’t mean the economy is — The Globe and Mail

American markets opened on Monday deep in the red. But the truth is that share prices, while down a lot, didn’t quite collapse

apple.news

The market often leads the economy. Basically, the timing couldn't be worse for Harris, as people will be feeling the pinch of the recession right as they're headed to vote, and there's absolutely no way she can blame it on TRUMP!.

 

[theHawk]

To listen to market observers, the Federal Reserve is sleeping as the house burns down. After the week began with sharp falls in Asian stock markets, American analysts began calling for emergency interest rate cuts from the Fed. Otherwise, they say, falling stock prices risked turning into an outright crash.

Arguably, investors are mapping their own pain onto the economy as a whole. Despite Monday’s sell-off, the macro-data from the broader economy doesn’t quite paint the picture of collapse that they’re drawing, at least not yet.

High-frequency data, like air travel and flight bookings, still indicate a US economy which remains in pretty good shape. Although there’s little question the economy has cooled down, it bears repeating that it’s coming off a period of very hot growth. Overall, the picture is of a gradual softening, not an imminent collapse. Consumer spending is still up. The U.S., in short, is not Canada.

Ironically, therefore, the widespread expectation that interest rates will be cut sharply is a self-defeating sentiment. It has driven bond yields down a lot, lowering borrowing costs – the expectation of cuts may actually take the pressure off central banks to get more aggressive with cuts. That is a good thing.

But the markets are not the economy, and investors’ pain is only their own. With the markets running less hot, the economy will benefit since capital, including houses, will become more affordable.

Opinion: Markets are down, but that doesn’t mean the economy is — The Globe and Mail

American markets opened on Monday deep in the red. But the truth is that share prices, while down a lot, didn’t quite collapse

apple.news

I guess that means when the markets are up….it isn’t a sign of the economy either.

 

[Meathead]

To listen to market observers, the Federal Reserve is sleeping as the house burns down. After the week began with sharp falls in Asian stock markets, American analysts began calling for emergency interest rate cuts from the Fed. Otherwise, they say, falling stock prices risked turning into an outright crash.

Arguably, investors are mapping their own pain onto the economy as a whole. Despite Monday’s sell-off, the macro-data from the broader economy doesn’t quite paint the picture of collapse that they’re drawing, at least not yet.

High-frequency data, like air travel and flight bookings, still indicate a US economy which remains in pretty good shape. Although there’s little question the economy has cooled down, it bears repeating that it’s coming off a period of very hot growth. Overall, the picture is of a gradual softening, not an imminent collapse. Consumer spending is still up. The U.S., in short, is not Canada.

Ironically, therefore, the widespread expectation that interest rates will be cut sharply is a self-defeating sentiment. It has driven bond yields down a lot, lowering borrowing costs – the expectation of cuts may actually take the pressure off central banks to get more aggressive with cuts. That is a good thing.

But the markets are not the economy, and investors’ pain is only their own. With the markets running less hot, the economy will benefit since capital, including houses, will become more affordable.

Opinion: Markets are down, but that doesn’t mean the economy is — The Globe and Mail

American markets opened on Monday deep in the red. But the truth is that share prices, while down a lot, didn’t quite collapse

apple.news

It's the Biden/Harris economy stupid.

 

[Darkwind]

When the market was booming the MAGA cult told us the market is not the economy.
Now that there is a small correction happening the market is 100% the economy.

In a couple weeks when the market is back, the MAGA cult will tell us again the market is not the economy.

Well, there it is. The stupidest thing I'll read all day.

Those reporting on the Markets are LEFTWINGERS.

It's funny how when the markets were going down, it was Trump's fault, and it was a drag on the economy, but now, it's MAGA.

You clowns have a serious issue with hatred.

 

[jbrownson0831]

I guess that means when the markets are up….it isn’t a sign of the economy either.

skrewey has a comic book cut and paste ready for that too.....

 

[80zephyr]

How do the markets ever go down? Millions of people have 401k's and IRA's that invest billions in the markets every week.

 

[okfine]

Probably rebound tomorrow.

 

[Harpy Eagle]

Well, there it is. The stupidest thing I'll read all day.

Those reporting on the Markets are LEFTWINGERS.

It's funny how when the markets were going down, it was Trump's fault, and it was a drag on the economy, but now, it's MAGA.

You clowns have a serious issue with hatred.

Sorry the truth triggers you so badly.

When the market was doing well your fellow cult members said that the market was not a sign of how the economy was doing. Now that there is a small downturn all of a sudden the market and the economy are tied at the waist

 

[excalibur]

• Biden Gloats After Disastrous September Jobs Report: 885,000 Full-Time Jobs Lost, 1 Million+ Part-Time Jobs Added, Record Multiple Jobholders


• All "jobs" added in the past year have been part-time workers

 

[yidnar]

Sorry the truth triggers you so badly.

When the market was doing well your fellow cult members said that the market was not a sign of how the economy was doing. Now that there is a small downturn all of a sudden the market and the economy are tied at the waist

there is a lag in consumer confidence and their ability to buy because of sky high prices and the markets moron .. the downturn has started .. even with millions of new consumers coming into the country [thanks to Biden and Harris] the economy is slowing .. face it ! Dems own this one !

 

[Harpy Eagle]

there is a lag in consumer confidence and their ability to buy because of sky high prices and the markets moron .. the downturn has started .. even with millions of new consumers coming into the country [thanks to Biden and Harris] the economy is slowing .. face it ! Dems own this one !

I hope you do not suffer too much.

Me and mine will be fine.

 

[Oddball]

 

[JohnDB]

View attachment 990525

Literally EVERY market indicator concerning stocks and the economy have been showing a recession going from mild to severe for years now
PLUS
Everyone has known that the Government economic indicators have been contrary to what independent companies indicators have shown....and it has been exhaustively been discussed as this road we have been on was heading for this exact result.

We have been in a recession/depression for 3 years. The Market has been propped up by Biden and made gains based on nothing but smoke and mirrors.

I'm guessing that they believed they could hold it off until after Kamala lost the election so they could blame it on Trump....and where a few people are dumb enough to believe that people have been studying the market for "get rich quick" market plays way too much to believe that nonsense anymore.

"Dumb money" is not that dumb.

 

[Natural Citizen]

I dumped some gold just for giggles.

But I've got plenty more, so. Meh...

 

[Cellblock2429]

When the market was booming the MAGA cult told us the market is not the economy.
Now that there is a small correction happening the market is 100% the economy.

In a couple weeks when the market is back, the MAGA cult will tell us again the market is not the economy.

/—-/ No we didn’t.

 

[JohnDB]

I dumped some gold just for giggles.

But I've got plenty more, so. Meh...

Gold will rebound....it was only down 1-2% today as some people had to sell in order to cover margin calls.

Edit:
I take that back....Gold increased a little today as people headed to metals and commodities for a safe haven.