This Stagflation Has FAANGs — John Rubino #5490

Stagflation is here: GDP is shrinking while prices continue to rise. Fed has no choice but to keep raising rates and stocks are responding normally to this, by tanking (Friday was brutal). The FAANG stocks in particular have stopped propping up the market. They led the market up and now they’re leading it down. The sign of a true leader. Housing affordability is at the worst level ever. Higher rates and higher prices must cause the housing market to slow down. The recession is already here. The understating of the inflation rate has hidden real negative GDP growth over the past 2-3 quarters. US government responds to Musk buying Twitter by launching a Ministry of Truth -- housed in Homeland Security and run by a cartoon villain. Russia/Ukraine war is settling into a quagmire AND getting even more dangerous as Nato sends more weapons. This is clearly a Nato operation to weaken Russia. But it might backfire on the dollar.