Avoiding recession

Toyota
BgYd10

Go to company page Toyota

BgYd10
Yesterday 8 Comments

If we know a recession is "coming", we can avoid it (bank raising interest rate...) What do y'all think? A recession only hits when we don't expect it, and/or bank does nothing about it

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TOP 8 Comments
  • New
    IdUr63

    New

    IdUr63
    What is your actual TC Toyota
    Yesterday 1
  • Meta
    rhombus_

    Go to company page Meta

    rhombus_
    Look at Paul Volker. Of course today is not like 1980, but this is a clear example where the fed intentionally triggered a recession to combat inflation. They raised interest rates from like 10% to 20%, the economy tanked but inflation finally got under control. I believe most economic historians consider this a successful move, even if it was hugely unpopular at the time

    Fed is unlikely to do anything drastic like that, both because the situation isn't as dire as then, and the fed now has an additional unemployment goal and so they are now openly stating the balancing act they are trying

    If a recession happens triggered by the fed, then it could have just been "correcting" an overstimulated economy that shouldn't have had that big a gdp in the first place (overheated by the fed but then fixed)

    Inflation is the wildcard here. My fear is if inflation is largely caused by the supply side (covid), and if covid still causes large disruptions like what we're seeing in China, it's extremely painful to cut down demand just to bring it down to the covid-impacted supply constraints
    Yesterday 1
  • There’s an old saying “economists have successfully predicted 12 out of the last 3 recessions”. We always know it’s coming. The idea that it only hits when you don’t expect it is ludicrous.
    Yesterday 0
  • Everything in life is cyclical. There were a lot of things Brandon could’ve done to soften the blow, but unfortunately we are way past that, Ukraine/Russia certainly accelerated things too.
    Yesterday 0
  • Netflix
    bjer26

    Go to company page Netflix

    bjer26
    You are overestimating the power of human beings.
    Yesterday 0