Economy & Markets To Suffer From More Government Bungling

They say there’s no bad situation that the government can’t make even worse.

And that certainly seems to be the case right now.

The government’s extreme intervention has resulted in an economic & financial system now dependent upon ever more stimulus.

But suddenly, there are a number of government-created curveballs — the Federal Reserve taper, gridlock over the fiscal stimulus package, a new tax bill, the debt ceiling showdown, and China’s economic and regulatory tightening that’s leading to crises like Evergrande

— that look like they will reduce the flow of stimulus going forward and create a drag on global growth.

To predict what the impact will be on both the economy at large as well as the financial markets, we turn to seasoned investment advisor Ted Oakley.

In this new interview, Ted explains why he predicts a market correction will arrive by earlier 2022 (or sooner) and then shares how he is prudently positioning his clients’ portfolios for that now.

Contagion! Evergrande, Inflation, Shortages & Fed Taper To Worsen Slowing Economy | Jim Bianco (PT1)

The world has become a lot more volatile over the past few weeks.

Markets are lurching up & down as investors have become suddenly concerned about contagion — and not just from the new COVID variants, but contagion from the failure of big players in China, like Evergrande, and contagion from rising input costs caused by both stimulus and snarled global supply chains.

A mind-boggling amount of money — tens of trillions of dollars worth of

monetary & fiscal stimulus — has been issued around the world since the pandemic broke out last year. But the global economy is slowing fast, led by Asia — and China in particular.

How can the boost to the economy from such a massive flood of money already be over?

How worried should we be? And what are the likely implications?

To tackle these important questions, I’m thrilled to welcome Jim Bianco back onto the program.

Jim is President and Macro Strategist at Bianco Research, where he provides objective, incisive commentary that challenges consensus thinking. across monetary policy, the intersection of markets and politics, the role of government in the economy, fund flows and positioning in financial markets