The Economy Is in a Pickle
https://www.wsj.com/opinion/the-economy-is-in-a-pickle-private-equity-risk-fbc4b2b2
https://www.wsj.com/opinion/the-economy-is-in-a-pickle-private-equity-risk-fbc4b2b2
Andy Kessler:
A potential scenario: The economy nose-dives, inflation rises, profits plummet, private credit implodes, interest rates fall, the dollar drops further, liquidity dries up, and dicey markets lead to more struggling times. How do we avoid this messy doom loop? It doesn’t take a degree from Harvard to figure it out. Zero tariffs. A Treasury secretary who promotes a strong dollar. Cut marginal tax rates to stimulate investment. And a push for deregulation (instead of tariffs) with real laws instead of executive orders. Either way, the next few months could be ugly. How we emerge will define this era.
A potential scenario: The economy nose-dives, inflation rises, profits plummet, private credit implodes, interest rates fall, the dollar drops further, liquidity dries up, and dicey markets lead to more struggling times. How do we avoid this messy doom loop? It doesn’t take a degree from Harvard to figure it out. Zero tariffs. A Treasury secretary who promotes a strong dollar. Cut marginal tax rates to stimulate investment. And a push for deregulation (instead of tariffs) with real laws instead of executive orders. Either way, the next few months could be ugly. How we emerge will define this era.