It’s a Richcession, Not a Recession

[shaburn]

https://www.wsj.com/articles/its-a-richcession-not-a-recession-heres-your-investing-playbook-ddffb60

[shaburn]

Is this true? Yes or no

[rhelz → shaburn]

Yes. Due to high inflation (which is pragmatically a wealth tax) and stupid decisions, Facebook, Google, and Elon Musk have lost a lot of money. But (with the notable exception of the 100,000 or so employees they pre-emptively layed-off) this is largely a "them" problem.

Employment is still very, very tight by historical standards, in all sectors of the economy. Which means the pain points are largely confined to a small part of the population.

[shaburn → rhelz]

Rhetorical. Is this by design as it appears this recession is intentionally created by the Fed.

[rhelz → shaburn]

Of course its intentional! The charter of the Fed is to keep inflation low while keeping employment high.

By this measure the Fed is doing great:

1. Inflation has come down from a high of 9.1% in 6/22 to 6.4% today, and will continue to shrink.

2. Current unemployment rate is around 3.4% which is just crazy low.

[shaburn → rhelz]

I think Jay Powell is one of the most unsung heroes of the day.