Peak Prosperity Deflation and Market Volatility Dead Ahead
11 snips
Feb 8, 2025 In a riveting discussion, Ed Dowd from Phinance Technologies, a macroeconomist and market analyst, dives into the housing market's changes and the impact of inflation and immigration on rent prices. He predicts a recession and a decrease in CPI by 2025, forecasting its effects on interest rates and investments. The conversation also touches on the safety of gold and silver amidst economic turbulence and examines Japan's unique challenges and their global repercussions. Dowd highlights technology's role in shaping future deflationary trends.
AI Snips
Chapters
Transcript
Episode notes
Housing Market Downturn
- Housing market faces headwinds from increased construction and declining affordability.
- Rents are dropping due to high mortgage rates and decreased immigration.
Flawed Inflation Measures
- Official inflation measures, including owner's equivalent rent, are flawed.
- Expect lower CPI throughout 2025, surprising many with deflationary trends.
Broken Transmission Mechanisms
- The Federal Reserve's shift from direct market intervention to adjusting interest rates has broken transmission mechanisms.
- Banks are extending and pretending with bad loans, masking the true credit risks.