/biz/ - Business & Finance

>>49908484
Recessions happen whether you want them to or not. They're both an organic part of the business cycle *and* exacerbated by external forces: war, natural disaster, pandemic, or anything else that fucks with supply, demand, or the supply chain.
Recessions can be managed: that's what the fed is for. The problem is, politicians treat the business cycle like a game of hot potato: no one wants to be in office at the onset of a recession, so they try to push it back or get out of it ASAP.
The shit we're in now is due to a variety of organic and external factors: supply chains not keeping up with demand, weather and pandemics affecting producers and transporters worldwide, the war in Ukraine, etc.. But it's been magnified by the over-stimulus during the COVID 19 recession and the lukewarm efforts under the current admin.
The Fed needs to stop pussy-footing and just squash the fucking consumer demand already. They've been telegraphing all their hikes to the point where they don't even matter: it's barely an overstatement to say everyone knew about the 75 points long before they officially announced it.
Also, WE ARE IN A FUCKING RECESSION.
I don't understand all these headlines talking about the "possibility" of a recession.
>Stock market bouncing down like 20% overall since december
>commodities outperforming equities
>defensive sectors like Healthcare, Energy, and Consumer Staples outperforming the rest of the market
>tech, consumer discretionary, real estate under performing an already-shit market since december
>20 year treasury indices starting to outperform equities
We're in the early phase of a recession -- knee fucking deep in it. Next you'll see layoffs, foreclosures, etc.. Given that recessions last an average of 1.5 years, we're about a third of the way through.

>>16545371
True, and we should add that the economy grows over time so the business cycle slopes upwards, which explains why there is inflation in the long run and not just cyclically. But then I would ask: why doesn't supply grow equally alongside demand to keep prices stable?
>>16545599
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