For all the over-the-top media bluster over how hunky-dory President Joe Biden’s decrepit economy supposedly is, Bloomberg News decided to red-pill itself: The prospect of a recession still threatens America.
“Why a US Recession Is Still Likely — and Coming Soon,” read Bloomberg News’s Oct. 1 headline. The bottom line, reported the liberal outlet, is that “history, and data, suggest the consensus has gotten a little too complacent — just as it did before every US downturn of the past four decades.” Bloomberg News ripped the recycled propaganda that somehow the U.S. was poised for a “soft-landing” from its tumultuous inflation crisis spurred on by Biden’s allergic-to-austerity spending policies. In fact, Bloomberg News said in a sub-headline, “Soft Landing Calls Always Precede Recessions.” One reason the outlet analyzed why economists (and media talking heads for that matter) fail to anticipate recessions is because they treat it as a “linear process,” the outlet claimed. “But recessions are non-linear events. The human mind isn’t good at thinking about them.” No kidding, eh Jim Cramer?
The Oct. 2 Bloomberg News newsletter was headlined: “Brace for a US Recession.”
However, the situation could already be worse than Bloomberg News let on. Business Insider-dubbed “legendary economist” Gary Shilling is already on the record as of Sept. 16 suggesting that the U.S. could be already in the midst of a recession. “‘It's probably starting now, maybe it's already started,’” Shilling told Insider. Bloomberg News undercut the “soft-landing optimists” who gaslight how “stocks have had a good year, [how] manufacturing is bottoming out and [how] housing reaccelerating. The trouble is, those are the areas that have the shortest lag time from rate hikes to real-world impact.” The reality, said Bloomberg News, paints a much bleaker picture:
[T]he full force of the Fed's hikes — 525 basis points since early 2022 — won't be felt until the end of this year or early 2024. When that happens, it will provide a fresh impetus for stocks and housing to turn down. It’s premature to say the economy has weathered that storm. And the Fed may not even be done hiking yet, [emphasis added.]
In Bloomberg News’s view, “[I]f you look at the gauges that matter most to America’s recession-deciders — and where most analysts reckon they’re headed — a downturn is already in the cards.” The gauges themselves, as Bloomberg News noted, might not even factor a cascade of newly developing economic threats, such as the ongoing United Auto Workers (UAW) strike, the restarting of student loan payments, surging crude oil prices and a global economic slump.
But aside from Bloomberg News’s moment of disillusionment, the derelict manner in which the leftist media writ large has continued to cover (or not cover) the state of the economy under Biden has been nothing short of despicable. For example, multiple media outlets have doubled down on mindlessly regurgitating the premature “soft landing” talking point. Reuters even had the audacity to run a condescending Sept. 26 story headlined: “The elusive Fed 'soft landing' nears. Why are Americans so mad about the economy?”
The economy has been flashing red flags on multiple fronts. The Wall Street Journal reported Oct. 1 that small business bankruptcies are rising at the “worst pace” since the 2020 pandemic. Creative Planning Chief Market Strategist Charlie Bilello said in a Sept. 27 X post that “US housing affordability is worse today than the peak of the last housing bubble.” Effectively, said Bilello, "The median American household would need to spend 43.8% of their income to afford the median priced home, a record high."
US housing affordability is worse today than the peak of the last housing bubble. The median American household would need to spend 43.8% of their income to afford the median priced home, a record high. pic.twitter.com/Y4FQi0Lr7Z— Charlie Bilello (@charliebilello) September 27, 2023
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