— Win Smart, CFA (@WinfieldSmart) October 9, 2023
1970s-style stagflation might return warns Deutsche Bank pic.twitter.com/yZ6UjOv3SH
— Barchart (@Barchart) October 10, 2023
Deutsche Bank warns1970s-Style Stagflation May Be at Risk of Repeating Itself
Deutsche Bank warns of rising inflation risks reminiscent of the 1970s stagflation era, accentuated by recent geopolitical events like the Hamas attacks on Israel. Factors such as soaring oil prices, consistent inflation above target in major economies, and potential weather patterns like El Niño, known for driving up commodity prices, add to the concern. While current inflation indicators differ from the 1970s, the bank emphasizes the importance of not being complacent, referencing historical lessons where inflation surged due to premature policy easing.
A whole lot of carpet bombing is going on right now.
Iran is clearly the chosen scapegoat here when the stock market and banking system falls apart later this month.
Expecting the Fed to pull another $20-$30B of emergency OCE liquidity away from the banking system this week. https://t.co/jxLLpe1Src
— Financelot (@FinanceLancelot) October 10, 2023
U.S. Small Business Sentiment Declined Again in September on Continued Concern Over Inflation
U.S. small business sentiment declined in September, according to the NFIB, due to inflation concerns and labor shortages. The optimism index remained below its historical average, with significant economic uncertainties and labor issues in sectors like construction and retail. Many businesses expect worsening conditions.