David Rosenberg says the US economy is a “dead man walking” and warns of a “hard landing” ahead. “Don’t believe the hype! This economy is a dead man walking,” Rosenberg said in a tweet Thursday. “We’re heading into a hard landing in the second half of the year,” he told Wealthion. Though a debt default was narrowly avoided, Americans have come to expect a last-minute deal, no matter what. The stock market largely ignored scary debt ceiling headlines and instead saw the crisis as an opportunity. This complacency will only be strengthened in the face of future debt ceiling crises, making a default likely in the near future. In more positive news, analysts say that gold’s appeal will not weaken anytime soon as the deal removes a headwind for the dollar. “We believe passage of the deal will leave the door open for a 25 bp hike at the June 13-14 FOMC meeting … A potential default was really the only thing that could have prevented a hike this month,” said analysts at Brown Brothers Harriman.
Markets Insider/Zahra Tayeb
Top economist David Rosenberg says the US economy is a ‘dead man walking’ – and warns of a ‘hard landing’ ahead
David Rosenberg just turned even more bearish about the US economy.
“Don’t believe the hype! This economy is a dead man walking,” the Rosenberg Research chief said in a tweet on Thursday that also linked to an interview he gave to Wealthion.
“You look at the United States and it seems to me that we’re still making this transition from expansion to recession,” Rosenberg said.
“I know it sounds extremely controversial to talk about the US going into recession, just because the lagging and coincident indicators are telling you that we’re into something brand-spanking new about a no-landing or a soft landing. We’re heading into a hard-landing in the second half of the year,” he said.
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MarketWatch/Chuck Jaffe
Opinion: America’s latest pullback from the debt-ceiling cliff won’t be its last
With Congress raising the debt-ceiling and both sides of the aisle grumbling about the outcome, the debate over the mechanics of paying for the U.S. government’s obligations and the close call with default now fades back into obscurity.
Until the next time.
Assuming Congress won’t do away with the debt ceiling and push all spending debates into budget and appropriation legislation where they rightly belong, the country’s latest pullback from the edge of default won’t be its last.
You can read the full article, here.
Kitco News/Neils Christensen
Analysts say there is still plenty of safe-haven support for gold as U.S. Congress resolves debt ceiling risks
Investors should not expect gold’s safe-haven appeal to weaken anytime soon, even as the U.S. once again narrowly averts another economic crisis after the House of Representatives passed eleventh-hour legislation to increase the debt ceiling.
The debt ceiling passed the House late Wednesday evening with a 75% majority vote. The Senate is expected to vote on the bill Friday, and President Joe Biden would sign it before the U.S. Treasury Department’s June 5 deadline.
According to some analysts, the last-minute deal averting a major economic crisis could weaken gold’s safe-haven allure; however, other analysts note more significant issues are still at play.
You can read the full article, here.
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