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

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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.

 

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