Opinion: The Goldilocks economy and stock market are dying, Roubini says

NEW YORK —How will the global economy and markets evolve over the next year? There are four scenarios that could follow the “mild stagflation” of the last few months.

For markets, this would represent a resumption of the “reflation trade” outlook from earlier this year, when it was hoped that stronger growth would support stronger earnings and even higher stock prices. The second scenario involves “overheating.” Here, growth would accelerate as the supply bottlenecks are cleared, but inflation would remain stubbornly higher, because its causes would turn out not to be temporary. With unspent savings and pent-up demand already high, the continuation of ultra-loose monetary and fiscal policies would boost aggregate demand even further.

Moreover, a host of medium-term persistent negative supply shocks could curtail growth over time and drive up production costs, adding to the inflationary pressure.

Faced with a debt trap and persistently above-target inflation, they will almost certainly wimp out and lag behind the curve, even as fiscal policies remain too loose. The Panglossian scenario that is currently priced into financial markets may eventually turn out to be a pipe dream. Rather than fixating on Goldilocks, economic observers should remember Cassandra, whose warnings were ignored until it was too late.

Hey Guys, are you interested in paid signals, bitcoin mining, trading & coin pumps investment Rol 10-30% daily (E.g invest 1$ earn 30% which $500 daily & weekly earnings $3,500) Dm me for more details on how to start

Unless we change capitalism we gonna end up with record high prices and recession or depression. Capitalism needs to be history and new more equitable system should be our reality.

I'm explaining important things to you.

this is terrible news

South Africa South Africa Latest News, South Africa South Africa Headlines

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

Buy these quality stocks with the economy set to slow, Bank of America saysNew for subscribers: Buy these quality stocks with the economy set to slow, Bank of America says. Check out CNBCPro today.
Source: CNBC - 🏆 12. / 72 Read more »

Opinion: One hopeful sign for hard-hit stocks: S&P 500 is below its 50-day moving averageOPINION: If the stock market does decline, don’t blame it on the S&P 500 breaking below its 50-day moving average. Michael Burry Warns Retail Traders About the 'Mother of All Crashes' Evegrande is just one card in a collapsing house of cards! MktwHulbert so... sell you mean. 👌
Source: MarketWatch - 🏆 3. / 97 Read more »

Goldman picks 9 semiconductor stocks to pop on new 'extreme ultraviolet' trendThe market for new chip-making equipment is 'significantly larger' than Goldman's analysts had previously thought, which it said will benefit a raft of stocks. Pro nice Pro For all those who are new to this working from home Bitcoin trading options Here's a little tip: Get a trusted Bitcoin expert and stick to her earn_with_Jens1 Invest and play at similar times each day. Because : In times of chaos, your investment is your anchor to success
Source: CNBC - 🏆 12. / 72 Read more »