Tag

Economic Recession

All articles tagged with #economic recession

finance1 year ago

Unprecedented U.S. Money Supply Trend Signals Major Stock Market Shift

The US money supply, specifically the M2 money supply, has experienced a significant decline for the first time since the Great Depression, which historically foreshadows economic trouble. This decline in money supply could potentially lead to a US recession, impacting corporate earnings and stock market performance. However, historical data shows that economic downturns are typically short-lived, and the stock market has a strong track record of recovering and reaching new highs over the long term, making it important for investors to maintain patience and perspective.

"China's Military Buildup and Taiwan's Response: A Comparison of Defense Budgets and Strategic Shifts"

China's economic resurgence is in trouble due to the global recession, declining population, and overproduction, leading to a mass recession and cost-of-living crisis. Despite this, China's military spending is set to increase by 7.2%, with a focus on building up its military capabilities, including a significant nuclear arsenal and infrastructure for potential conflict. President Xi Jinping's leadership is steering China towards a more insular economy and increased military influence, posing potential challenges for the US and other global powers.

economics1 year ago

Global Economic Turmoil: Japan and UK Slip into Recession, US Economy Resilient

Japan's economy has slipped into a technical recession, prompting the Bank of Japan to grapple with the challenge of supporting the yen while facing sluggish growth. The central bank is expected to exit its negative interest rate regime this spring, but its ability to alleviate depreciation pressure on the yen is limited by high inflation that has crimped domestic demand. Former BOJ policy board member Sayuri Shirai believes the bank is likely to remove negative interest rates this spring due to concerns about side effects, despite the difficulty of achieving stable inflation and the impact on yen depreciation. The prolonged high inflation rates have hit domestic consumption, contributing to the second consecutive contraction in Japan's GDP in the fourth quarter.

economy2 years ago

Surprising Surge in US Retail Sales Defies Consumer Slowdown

Retail sales in the US unexpectedly rose by 0.7% in September, surpassing economists' projections, despite concerns over inflation, high interest rates, and a potential economic recession. Consumers increased spending on groceries, gas, health and personal care, and online shopping, but reduced spending on electronics, appliances, garden supplies, and clothing. While a strong job market and wage increases have supported consumer spending, economists anticipate caution in the coming months due to the resumption of student loan payments, high interest rates, and increased reliance on credit cards.

finance2 years ago

US Banking System Faces $541 Trillion Exodus in 'Severely Adverse' Scenario, Warns Federal Reserve

The Federal Reserve has warned that in a "severely adverse" scenario, over $541 billion will exit the US banking system. The annual bank stress test revealed that while large US banks would survive a severe recession, a group of 23 banking giants, including JPMorgan Chase, Bank of America, and Wells Fargo, would experience significant losses. These losses include $424 billion in loan losses, $18 billion in additional losses, $94 billion in trading and counterparty losses, and $5 billion in securities losses. Despite the potential losses, all 23 banks tested remained above their minimum capital requirements during the hypothetical recession.

energy2 years ago

Oil Prices Continue to Fluctuate Amid Economic Uncertainty.

Oil prices have plunged to their lowest point since late March due to apprehension surrounding the possibility of an economic recession and lower fuel demand. The increase in the number of Americans filing for new claims of unemployment benefits and a sharp fall in factory activity in the mid-Atlantic region are among the bearish indicators. Some analysts initially thought the weakness was attributed to the market pricing in the OPEC+ output cuts.

business2 years ago

Commercial Real Estate Faces Uncertain Future Amid Banking Fiasco and Office Market Shifts.

Morgan Stanley analysts predict a peak-to-trough commercial real estate (CRE) price decline of up to 40%, worse than in the Great Financial Crisis, due to rising vacancy rates and falling property values caused by remote work. More than 50% of the $2.9tn in commercial mortgages will need to be renegotiated in the next 24 months when new lending rates are likely to be up by 350 to 450 basis points. Tighter lending standards for the CRE market are now likely, increasing the risk of defaults, distress, and delinquencies, as the industry is largely built on debt.