Category: Recession
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Why is Warren Buffett Looking So Grim?
Warren Buffett has sold about $23 billion of stock since the beginning of the year, including a recent $2 billion trade in a single concentrated position, Chevron.[1] Buffett has built Berkshire’s cash pile to $153 billion! What does he know that the rest of us don’t? Buffett, arguably the most…
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Recession Warning: Does Falling M2 Signal A Recession?
The M2 money supply rose at an unprecedented pace in the two years following the covid pandemic. In the last year, that same M2 money supply has fallen at a rate not seen since the 1930s. In this post, we explain why the rise and subsequent fall in M2 makes…
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US Debt Downgraded! Does It Matter?
At the end of July, 2023, the financial rating agency Fitch announced that it was downgrading the sovereign debt of the United States. The stock market tumbled. The bond market tumbled. Talking heads talked. But what does the downgrade really mean? “Sovereign Debt Cannot Default”In the aftermath of the Fitch announcement, many pundits…