I’ve been extremely agitated by the random news stories about the Economy. If we are to believe the Government, it’s all sunshine and rainbows. Nothing to worry about and nothing to see here. The Fed just dropped another almost $57 Billion dollars into the market. They’ve been doing this throughout 2019. If the markets and economy was really so strong, why the infusion of wealth into them?
This from Goldman Sachs 2020:
“Overall, the changes underlying the Great Moderation appear intact, and we see the economy as structurally less recession-prone today,” Goldman economists Jan Hatzius and David Mericle.
Just before the Great Depression 1929:
“Stock prices have reached what looks like a permanently high plateau”… Yale Economist Irving Fisher, October 16th 1929.
Then today I read an article that Goldman Sachs believes our Economy is recession proof. That’s the sort of thing we heard back in 2008 “banks are too big too fail”. The Revenues from Taxation in America are at an all time low. We are still in an 18 year war with two fronts, 3 if you include Syria. Unemployment levels are about to become a problem. Though at record lows that leads to this thought: What happens when there aren’t enough people working to fuel the Economy? It will happen. It’s common sense really. The Boomer Generation is aging out of the work force. The Millennial Generation doesn’t have enough people to take care of the aging Boomers. We are lop-sided.
Not to worry though, America is doing great…on the surface.