Greg Hunter – Economist John Williams says a recession isn’t on the way–it’s already here. Williams explains, “There are a number of factors here that are showing recession. Number one is industrial production. You can’t ignore industrial production; it is usually used with retail sales in timing formal recessions. It turned down last December, and it generally has not looked up since. You’ve had three out of four quarters in the last year contracting. The numbers that came out for the fourth quarter showed year to year contractions that you never see outside of recessions. This is typical of a formal recession.
You are also seeing recession if you look at the housing numbers. They have turned down quarter to quarter for the fourth quarter . . . with housing starts. If you look at the stock market and the S&P 500, the revenues that are being reported for companies . . . revenues for the S&P 500 are falling off quarter to quarter. You never see that outside of a recession. That is a broad measure of economic activity. . . .The Atlanta Fed . . . their GDP number for the fourth quarter has just dropped to .6%. . . . I think it will be negative in the second reporting. With all these factors coming together, I think you will have an early call on a new recession or at least it will be viewed as a new recession in the early part of this new year.”
https://youtu.be/9lGSs3NLRgY
Williams says the main thrust of the Federal Reserve has been to prop up troubled banks that are still in trouble. Williams says, “There is very little the Fed can do now to help the economy. Actually, raising interest rates helps some because they can build a little more profit margin in their lending. . . .But if they run into trouble, if the banking system runs into trouble, they are going to do everything they have to do to keep the system from collapsing.
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