when inflation is high, wages and employment are often high as well. But that's not always the case. In the event of a critical supply constraint (like an oil crisis), stagflation can occur. That's what happened in the 1970s, and it can be a concern during periods when inflation is...
When theyield curve inverts, it often foreshadows a recession, but the timing of the ensuing pullback is highly unpredictable. Incidentally, an inversion occurs when short-term Treasury bills and notes offer a higher yield than longer-dated Treasury bonds. If investors are willing to accept a ...
This often also includes a regular assessment of how geopolitical developments affect current strategy and the proactive inclusion of political risk analysis in mergers and acquisition (M&A), market entry and exit, supply chain and international footprint decisions. By embedding geopolitical analysis into...
And so even though a well-run escort service may slow down during recessions, it should never close. In fact, some escort services get busier, depending on what types of clients live in their cities. Here’s another thing you probably don’t know: your escort business doesn’t have to ...
" for apples that won't turn brown when you cut them. The original "frankenfood" was the creation of an angry English professor, Paul Lewis, writing a letter to the New York Times in 1992. As is often the way, in a moment of enraged inspiration, he combined "Franken" with "food"...
(which are contractions within a short-term debt cycle) and depressions (which are contractions within deleveragings). Recessions are typically well understood because they happen often and most of us have experienced them, whereas depressions and deleveragings are typically poorly understood because they...
How Do Recessions Affect Investors? Typically during the early part of a recession, the stock market has negative returns. This is often because of the negative sentiment around poor or lackluster corporate earnings. But the stock market will often recover before the recession is over. Should you...
occur in contractions and recessions such as hyperinflation, stagflation, stock marketcrashes, extended bear markets, and unbalanced interest and inflation rates. Of course, economic collapses can also occur from extraordinary factors like disastrous government policies, a depressed global market, or the ...
Understanding Fiat Money The term "fiat" is a Latin word that's often translated as "it shall be" or "let it be done." Fiat currencies only have value because the government maintains that value. There's no utility to fiat money in itself. ...
Interest rate spread (10-year Treasury vs.Federal Fundstarget): The interest rate spread is often referred to as theyield curveand implies the expected direction of short-, medium- and long-term interest rates. Changes in the yield curve have been the most accurate predictors of downturns in ...