/biz/ - Business & Finance

Reiterating. The entire airline industry in aggregate is down on average 35% since July. It's been a very orderly selloff.
Industries built on high capex and floating debt cannot function at current real yields that the market is pricing today. A collapse is coming. Zombies walking to their grave.

The same is true of consumers in aggregate. The demographics in the US today simply can't support what the Fed is trying to do. Too many retiring boomers. You can't offer positive real yields at multi-decade highs heading into a large wave of retirees. They're happily feasting on America's future, not a doubt in their mind. Meanwhile on the other side of the coin, broken endebted zoomers writhe in financial misery, holding loans and credit card debt that they know full well can never be repaid, hopping around minimum monthly payments, working multiple jobs just to stay alive and cover the rent on that 1 bedroom apartment.
But the cracks are starting to show, the system is rotten, broken, and finally some visible signs of this decay are starting to appear across major economic indicators.

>>56454102
I'll give an example:
JETS, an ETF consisting of airline stocks, has been continuing a uniform linear downward trend for the past 3 months. Now down about 35% since mid July.

I can give more examples if you'd like. Many stocks across multiple sectors are breaking 52 week lows. Bond yields pushing 20 year highs, while inflation rolls over.
The simple truth is that a collapse is coming. Ignore it if you will, but it is coming. Today's asset values do not make sense under the current bond structure and inflation expectations. Something is wrong. Someone is going to get fucked.