Inflation is not Cum’n down without a lot of Pain..
Volker caused two Recession on purpose how many Recessions will Powell cause don’t know..
It will happen by Him or without Him..
Wealth Destruction is a Certain…
This feels much more like the Dot.com boom-bust than the Carter malaise. The key aspect of the Carter malaise was the stagnation of US innovation, not in a small part due to the failure of the “business conglomerate” model. American business we’re getting their asses handed to them by lots of innovative, foreign competitors. Toyota, Sony, Panasonic, etc. businesses we’re headed to Mexico, Taiwan and Japan and jobs were going overseas.
Today, we’re in the middle of a flight from China. Yes, there’s pain coming here, but re-shoring will keep pressure on companies to staff these functions in the US, and that will keep the unemployment down, like in 2,000.
Like in the dot.com bust, there was the usual “irrational exuberance” followed by a market crash. The crash doesn’t make much difference, economically. The wild card is inventoriies, which are much higher than they need to be because inventories stocked up, “just in case”. The fact that a lot of the manufacturing of that inventory takes place overseas will probably ameliorate that inventory aspect for a significant part
