пятница, 27 сентября 2019 г.

Opinion: Stock market’s eerie parallels to September 2007 should raise recession fears

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MarketWatch/Sven Henrich

“Sound familiar? It fairly describes market and economic conditions in the U.S. over the past couple of months. Except that this paragraph would be as true for the U.S. economy and stock market in September 2007 as it is today. Consider that 12 years ago the yield curve was inverted and U.S. economic growth was markedly slower than it had been in 2006. Yet the Standard & Poor’s 500  made a new high in July 2007 (same as 2019), there was an August correction (same as 2019), and then the Fed cut rates on September 18 (ditto — same day even).”

USAGOLD note:  As we watch the analysts and pundits fumble around for an explanation as to what is going on in the credit markets at the present, we are reminded that there was similar confusion in 2007-2008 as Wall Street began its descent into chaos.  Nobody had a good explanation for what was happening. If you remember the confusion evolved to the prevailing mantra:  “We didn’t see it coming.”


Repost from 9-21-2019

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