Bob Prince |
“We are now approaching the stage where monetary tightening could produce, perhaps not a big downturn, but more pressure,” he went on to say.
“This week could fade into history and we won’t remember it, but we are clearly shifting from an era of monetary easing to monetary tightening,” he said. “If that [a growth inflection point] is what is happening, then this won’t be a one-week event.”
In the EPJ Daily Alert, I am reporting that it remains unclear how tight the Federal Reserve will get. At this point, more downside action in the stock market is very likely but it is not yet clear whether we are headed into a complete recession.
However, Prince is mistaken if he thinks that for certain that at most we face just a mediocre downturn. There is a dagger hanging over the economy.
-RW
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