The Economic Sh*tstorm Coming is Due to Reagan's Deregulated Economy

While these aren't huge sums in the grand scheme of things, the very fact that the Fed has gone from pumping created-from-nothing money into the economy to pulling that money back out is a Very Big Deal.

Add that to its plan to continue increasing interest rates, which also slows the economy, and we're looking at a potential Category 5 event.

Thus, the Financial Times was the bearer of the predictable bad tidings yesterday. Just from that day's FT's (digital) front page's "Live News Updates" column, these were some of the headlines:

• *Ford forecasts car industry consolidation as capital becomes constrained

• *Treasuries and US stocks slip as investors gird for monetary policy tightening

• *Bank of Canada prepared to 'act more forcefully' after latest rate rise

• *European stocks enter June on a muted note after turbulent month

• *German retail sales fell 5.4% in April

• *UK house price growth slows in May

• *China's manufacturing sector activity shrinks for third consecutive month

• *Government bonds sell off as eurozone inflation hits record high

• *JPMorgan chief says 'hurricane' is bearing down on economy

In that last article, JPMorgan CEO Jamie Dimon, who a week ago had predicted "storm clouds" on the economic horizon, became far more blunt yesterday.

"I said they're storm clouds, they're big storm clouds here," Dimon said, adding, "It's a hurricane."

Elaborating that the war in Ukraine and Europe's disconnection from Russian fossil fuel markets could drive oil as high as $175 a barrel, Dimon worried out loud:

"That hurricane is right out there down the road coming our way. We just don't know if it's a minor one or Superstorm Sandy"-."-."-."-And you better brace yourself."

Next Page  1  |  2  |  3  |  4

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).