Boomers may tank stocks, Fed can't escape recession forever: McDonald

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 33 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 17%
  • Publisher: 51%

Canada News News

Baby boomers might tank the stock market - and the Fed can't escape a recession forever, a finance guru warns

have blasted passive investing as a bubble that has mindlessly raised the valuations of the largest public companies to dangerous highs.

The former Wall Street trader — and author of"A Colossal Failure of Common Sense: The Incredible Inside Story of the Collapse of Lehman Brothers" — cautioned in another tweet that the Fed can't stop the economy from contracting. However, McDonald's view is the economy is cyclical and naturally suffers downturns, and animal spirits — the human emotions that affect consumer confidence — can't be controlled indefinitely. His belief appears to be that resilient consumer demand will ultimately buckle under pressure from fast-rising prices and higher interest costs on mortgages, credit cards, car loans, and other types of debt.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Asia in wary mood for US inflation, earnings testsWeak U.S. consumer-price data could lessen the risk of another Fed rate rise.
Source: Reuters - 🏆 2. / 97 Read more »