The current economic landscape is giving rise to growing concerns, with labor market deterioration, tightened lending standards by banks, and persistent inflation creating a potential stagflationary environment that could impact consumers’ purchasing power and lead to an economic slowdown. This situation, where interest rates rise while prices surge, is beginning to resemble past scenarios that have often culminated in recessions.
It's all fun and games until the labor market starts to deteriorate.
Keep in mind that just as inflation tends to develop in waves, so do unemployment rates.
This is a classic stagflationary environment. pic.twitter.com/N4y6lQzP6p
— Otavio (Tavi) Costa (@TaviCosta) November 3, 2023
Imagine paying 8% on your mortgage while buying groceries at +50%.
Have your hourly wages or salary kept up in the past 3 years?
🔥🔥🔥 pic.twitter.com/f4iNLEO4KQ— Wall Street Silver (@WallStreetSilv) November 3, 2023
"When 30-year mortgages and car loans cost you 8 percent it will impact consumer behavior," Blackstone CEO president said.
"Growth has been remarkably resilient, but if you keep policy this tight, this long, invariably you will cause the economy to slow down."
— unusual_whales (@unusual_whales) November 3, 2023
Banks are rapidly tightening lending standards
These levels have ALWAYS ended in a recession pic.twitter.com/zb09km8S4q
— Game of Trades (@GameofTrades_) November 3, 2023
Wow pic.twitter.com/Ha6KRNgcWz
— Win Smart, CFA (@WinfieldSmart) November 3, 2023
MARKET STATUS t.co/GCoZZVpZj5 pic.twitter.com/aInoq8INHp
— Win Smart, CFA (@WinfieldSmart) November 3, 2023