It’s a Richcession, Not a Recession

wsj.com

6 pointsshaburn5 comments

Is this true? Yes or no

Yes. Due to high inflation (which is pragmatically a wealth tax) and stupid decisions, Facebook, Google, and Elon Musk have lost a lot of money. But (with the notable exception of the 100,000 or so employees they pre-emptively layed-off) this is largely a "them" problem.

Employment is still very, very tight by historical standards, in all sectors of the economy. Which means the pain points are largely confined to a small part of the population.

Rhetorical. Is this by design as it appears this recession is intentionally created by the Fed.

Of course its intentional! The charter of the Fed is to keep inflation low while keeping employment high.

By this measure the Fed is doing great:

1. Inflation has come down from a high of 9.1% in 6/22 to 6.4% today, and will continue to shrink.

2. Current unemployment rate is around 3.4% which is just crazy low.

I think Jay Powell is one of the most unsung heroes of the day.

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