The CEO of Bank of America, Brian Moynihan, said that the financial giant no longer believes a recession is on the horizon for the American economy, hinting that the Biden administration and Federal Reserve have achieved a ‘soft landing’ after inflation troubles in recent years,” The Hill reports.
Hahahahahahahaha that’s not good
“No recession, for realsies! Now be optimistic and rack up that debt! Maybe get another mortgage! Don’t worry, this economy is fire!”
/- the Bank, with absolutely no ulterior motive behind its messaging whatsoever
I mean in their terms a recession has a very specific meaning and does not preclude a large number of people suffering an affordability crisis.
Because Biden has done a good job and Kamala has a good shot of winning we no longer are headed towards a recession. Was the outlook of Trump winning causing the previous prediction? If so why don’t they just say that.
Biden has done a good job
He’s done a great job for his corporate donors, while clawing back a bunch of the COVID-era money for lower and middle class Americans to appease fiscal conservatives both in his own party and in the GOP. That’s been great for top-line figures (GDP, Wall Street, etc) but dismal for the working stiffs that add real value to the economy.
He’s also riding an enormous tech bubble, first in the form of post-COVID cryptocurrency and then into the AI investment boom. Meanwhile the fundamentals of the economy - Boeing’s ability to build airliners, Tesla’s ability to build cars, Cloudstrike’s ability to maintain a functional internet - have rapidly eroded in the absence of any clear and coherent industry regulation. That’s before you get into the continued failure to curb carbon emissions or significantly expand our alternative energy infrastructure. That’s before you talk about the collapse of international trade routes, most notably through the Suez Canal, due to US-backed wars of aggression in Gaza, Yemen, and North Africa.
Then there’s the courts (which he refused to pack) gutting civil rights in the US. There’s the persistent threat of right-wing rioters disrupting democratic institutions. There are a host of red state governors flagrantly violating federal laws in their quixotic pursuit of a war on migrants. There’s a lingering meth epidemic that we have no public policy to solve.
You can definitely pin this on more than just Biden (although, if you get into the weeds of his time in the Senate, a lot of our modern supply chain and social safety net erosion comes thanks to legislation he’s advanced). But you can’t seriously say the state of the country and the world has improved over the last four years, with the possible exception of “Squint and we can pretend COVID isn’t a problem anymore”.
He’s done a shit job. Just less notably shit than the last guy.
You’re blaming Joe Biden for Cloudstrike? You are ridiculous.
You’re blaming Joe Biden for Cloudstrike?
I’m blaming the collapse of the regulatory state for Cloudstrike. And Biden is the titular chief executive of the regulatory state.
Yeah, it was totally Biden that took down the regulatory state. Democrats are well known for their opposition to regulation.
Yeah, it was totally Biden that took down the regulatory state.
Him and 81 other Senators, along with his friend Bill Clinton, in 1996. The Telecom Act of 1996 started the wave of consolidations in the industry that has lead to companies like Crowdstrike being the lynchpin for half the country’s digital security.
Democrats are well known for their opposition to regulation
Since at least Jimmy Carter, they absolutely have. But the Clinton Era wave of Blue Dogs and neoliberals that have come through since are outspoken in their opposition to any and all forms of regulation that can be classified as “unfriendly to business development”. The end result is enormous, increasingly rickety and ill-managed corporate dinosaurs who need to be propped up by the federal government for fear their collapse will take out large portions of our domestic infrastructure.
wave of consolidations in the industry that has lead to companies like Crowdstrike being the lynchpin
As someone who’s worked in IT since the 90s, a good portion in security, this is so far the most ridiculous thing I’ve read all day. Clowdstrike ate their face because they begged for it, and consolidation has no direct causal link.
The day is yet young and I have texans on my calendar today, but so far this is the winner. Please, go touch grass.
Clowdstrike ate their face because they begged for it, and consolidation has no direct causal link.
What?
He’s done a shit job. Just less notably shit than the last guy.
Given we don’t vote for the perfect candidate but only for the least-worse, then I can see where Biden was the best pick.
we don’t vote for the perfect candidate
We vote for the candidates with the biggest corporate sponsorship. And the end result are corporate candidates who bow to the interests of these business elites.
In a saner world, neither of these guys would have made it out of the primary, much less been the “top” picks in a general election.
I shit on corporate Dems too, but this is just an RFK brainworm take. If you aren’t at least acknowledging the inflation reduction act and the turnabout on union support then you’re living a in a bubble.
If you aren’t at least acknowledging the inflation reduction act
The inflation reduction act did a great job of boosting spending on a few niche industries, which has been a boon for cybersecurity and energy industry portfolios.
the turnabout on union support
Is green shoots that we’re seeing crushed underfoot by the judicial dismantling of the NLRB. Which brings us back to Joe Biden’s unwillingness to pack the courts and the periodic Dem majority in Congress dragging its feet on any kind of judicial reform or legislative backstop of historical judicial decisions.
you’re living a in a bubble
The approval ratings of all these assholes is in the toilet. Less than a trillion dollars spread over four years in a $27T/year domestic economy isn’t moving the needle, particularly when all the fundamentals - housing costs, health care costs, education costs, even basic food costs - are continuing to outpace wages, while the actual state of domestic infrastructure on the aggregate deteriorates faster than repairs and renovations are implemented.
There’s a reason Biden dropping out was such a serious shot in the arm for the party as a whole. He was dead weight.
You’re right it wasn’t enough, but the IRA moved the needle on inflation. Build Back Better would have done more. You talk about healthcare costs, caping insulin is a win. That might not matter to you, but it matters to my diabetic neighbor.
You talk about healthcare costs, caping insulin is a win.
For a single medication that’s still sold at significantly below the capped rate just about everywhere else in the world. The systemic problem of medical price gouging continues unabated.
That might not matter to you
This is a rule that only applies to senior citizens. So I don’t get to benefit until I turn 65. How many people will die of diabetes before they’re even eligible for this special rate?
I just told my neighbor his cheaper insulin doesn’t matter and the world would be the same if he were more poor. Thank you for giving the courage.
I just told my neighbor his cheaper insulin doesn’t matter
That sounds like a cheap, catty, and disrespectful thing to say to your neighbor. I get the sense that you might be an asshole.
I think you forgot the /s my dude. Hilarious take though, nice job, we all got a good laugh.
No, it was unrelated to the presidency. The president usually doesn’t affect monetary policy.
Except for the fact that Trump’s massive pressure on Jerome Powell did exactly that. The results were historic low interest rates and printing of money by the trillions, which was the precursor to the greed-flation we’re faced with today.
Obama isn’t exactly innocent of that either. The interest rates should have started increasing by about '16 or so, yet the Fed didn’t raise them.
The president usually doesn’t affect monetary policy.
Emphasis added. We have been well outside of norms since the end of the Obama presidency.
We’re outside of presidential norms whenever there’s a conservative president.
The can has been kicked, the stock market is safe for another month!
“there’s no way for us to make money on a recession right now, and it doesn’t seem to be swaying votes to the despot, so we have delayed the recession until after the election.”
You can’t just avoid a recession infinitely, the economy is cyclical - it’s coming. People will debate about when right up to the day it’s official.
Not to mention “soft landing” implies the economy went down - e.g. a recession. So at best they’re saying things recessed softly?
Kinda wild to think we’re not already or still in one.
“soft landing” implies the economy went down
yeah. the afetrmath of the COVID recession, it is not a big mystery what they mean
Soft landing has been in reference to bringing inflation down and supply / demand back in balance.
A recession is in reference to economic growth, and the US has been fairly solid there.
Forgive me if I don’t believe you BoA, seeing as you’re underwater from quite a few bad bets (read: short selling) and your customers credit lines are squeezed to the brink…
RIP my chance of buying a house then
I assume at this point the windfalls should start trickling down right? Any moment now right? You can use this mythical trickle down economic effect I have heard about to buy a house with cash.
inflation troubles: When worker wages outpace industry profits
Don’t worry, though. I’m sure you can finance a down payment on a security deposit for a six-month apartment lease.
But we’re reporting record profits so much that there were stock buy backs. Weird.
Well there’s sure SOMETHING trickling down… it’s not cash tho
I don’t think that really changes a huge amount with the economy.
If there’s 150,000 people who want to live in an area, and only 100,000 homes, then only ~67% of them will be able to buy a house there. The price is the most that any of those poorest 33% of people are willing to pay (or rather the most that the banks are willing to lend them).
If you were in the poorest 15% of people before a recession, then chances are you’ll be in pretty much the same place during and after it.
Sure, there’s a bit of wiggle room where they still ask stupid high prices for a bit before realising that nobody has any money, but as soon as banks are willing to lend 10% more, the house prices will soon follow.
I kind of think we’ve essentially been in a recession since 2008 and they’ve just kept kicking the can down the road to keep the bare essentials running, albeit at an increasingly worse rate.
But it has to all blow up eventually, because on our current trajectory it seems like the end state is to have everything owned by like 3 guys while everyone else presumably digs turnips out of the mud like a medieval peasant until the air catches fire. Which doesn’t seem very sustainable.
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