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Why Doesn't The US Economy Break?!
From themacrocompass.substack.com
The Fed hiked rates above 5%, and yet the US economy doesn't break. Back in 2022 already, the yield curve inverted and it has stayed inverted ever since. The lags looked relatively short, and the US economy was going through a soft patch in 2023 when it became consensus that a recession was gonna happen. Something even broke in markets (regional banks), and yet nothing really happened. Here is why. High interest rates are supposed to break something because an overly indebted economy will have to service a mountain of debt at expensive rates and it will have less money for income and spending. The problem is that ... (full story)
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