Drudge Retort: The Other Side of the News
Monday, June 25, 2018

Some economists on Wall Street think the economy could be growing at around a nearly 5 percent annual clip this quarter. But if the current economic vigor is only reflecting a short-term stimulus coming from the Trump administration's tax cut, then some kind of slowdown is to be expected. The unemployment rate is at an 18-year low. Low unemployment can sometimes be a precursor to a recession. On Thursday, the gap between two-year and 10-year United States Treasury notes was roughly 0.34 percentage points. It was last at these levels in 2007 when the United States economy was heading into what was arguably the worst recession in almost 80 years.

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The US isn't that close to an inversion yet, but the unemployment rate graph is a little ominous. Will this lead to rising wages and inflation or rising interest rates causing low profits and recession?

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Those who watch for yield curve inversion are starting to become a little concerned.

#1 | Posted by LampLighter at 2018-06-25 12:45 PM | Reply

So long as the return from Wall Street is higher than the overall wage growth and the overall growth of the economy, then yes, this is as good as it gets.

Who Stole The American Dream?
youtu.be

#2 | Posted by PinchALoaf at 2018-06-25 01:50 PM | Reply

So long as the return from Wall Street (making money off of money) is higher than the overall wage growth and the overall growth of the economy ... then yes ... this is as good as it gets.

#3 | Posted by PinchALoaf at 2018-06-25 01:52 PM | Reply


One of my indicators is the financial strength (income and savings) of the middle class, since the middle class is what drive boom times.

With the transfer of wealth towards the already-wealthy, the middle class has been sucking eggs since Reagan's trickle down economics.

#4 | Posted by LampLighter at 2018-06-25 02:13 PM | Reply | Newsworthy 3

Looks like the editors at the NYT got a nastygram from Priorities USA telling them to talk about any bad economic news, even if they had to stretch a lot, before the midterms.

#5 | Posted by Rightocenter at 2018-06-25 03:16 PM | Reply

The yield curve implies 3ish years before a recession, but the unemployment rate is indicating a recession could be imminent.
With record corporate and government debt, I can't figure out why interest rates are low.
I worry that when babyboomers really start eroding their nest eggs (shrinking private capital) we could see interest rates rise. I am not sure when that will be.

#6 | Posted by bored at 2018-06-25 03:20 PM | Reply

I predict the economy will keep growing for the top 20%.

#7 | Posted by Derek_Wildstar at 2018-06-25 04:02 PM | Reply

#6

I suspect the employment numbers are so far off reality that they are no longer a good predictor of recession. The fact that we aren't seeing wage growth inline with the reported unemployment rate is my proof of this.

#8 | Posted by TaoWarrior at 2018-06-25 04:29 PM | Reply

Dow closed below its 200-day moving avg today for first time since June 2016, ending the 7th longest streak in history at 501 trading days.

Thanks Obama.

#9 | Posted by donnerboy at 2018-06-25 07:23 PM | Reply

The Dow is an odd indicator, I like the S&P500 better. Both show that Obama presided over strong and steady stock value growth for his 8 years. Trump has hit a soft patch this year.

#10 | Posted by bored at 2018-06-26 12:05 AM | Reply

The economy is cyclical in that it goes up, down, and also stagnant periods. The stock market has for quite a while now been divergent from [not in tandem with] the economy.

#11 | Posted by MSgt at 2018-06-26 01:56 PM | Reply

The economy is cyclical in that it goes up, down, and also stagnant periods. The stock market has for quite a while now been divergent from [not in tandem with] the economy.
#11 | POSTED BY MSGT

That's right. We're due for another recession around Summer of next year; just depends on how deep it will be.

#12 | Posted by rstybeach11 at 2018-06-26 02:02 PM | Reply

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