Blazin
Creative Title
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I have tried to spend some time thinking about how I see this playing out and there are dynamics at play that make it very difficult. Mainly employment and demographics. Recessions are driven by unemployment, and unlike the previous seven recessions we are in a demographic situation where we are likely to face sustained labor shortages that are going to be pushing on the scales in a manner they weren't during previous economic cycles.
The middle class being squeezed does not mean that corporate profits suffer. In the US consumers spend everything they make especially when gainfully employed. I see slow down occurring as people run out of cash but companies are still completely fucked and can't find workers. This condition could last for some time where the consumer class will continue to feel pinched and their standard of living is likely to decline as their real wages struggle to keep pace. But since we are in an investing thread and not a FJB thread what matters is what this means to profits, and there is good evidence that corporations will still do fine sucking every last dime out of people.
Does it have a breaking point? And what does that breaking point look like?
The middle class being squeezed does not mean that corporate profits suffer. In the US consumers spend everything they make especially when gainfully employed. I see slow down occurring as people run out of cash but companies are still completely fucked and can't find workers. This condition could last for some time where the consumer class will continue to feel pinched and their standard of living is likely to decline as their real wages struggle to keep pace. But since we are in an investing thread and not a FJB thread what matters is what this means to profits, and there is good evidence that corporations will still do fine sucking every last dime out of people.
Does it have a breaking point? And what does that breaking point look like?
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