The David Lin Report 71 Bankruptcies In August, Economic 'Cracks Are Widening' Fast, Says Danielle DiMartino Booth
Oct 2, 2025
Danielle DiMartino Booth, a former Federal Reserve insider and CEO of QI Research, dives deep into the alarming economic landscape. She reveals that 71 companies went bankrupt in August, highlighting significant cracks in the economy. Despite soaring stock markets, she contrasts the Fed's optimistic labor assessments with harsh realities like rising unemployment. Additionally, she discusses the impacts of credit market stresses and signals that indicate a looming recession, urging listeners to consider a defensive investment strategy.
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Fed Chair Versus FOMC Chair Distinction
- The Fed chair nomination and FOMC chair election are distinct processes with separate authorities.
- Powell could legally remain FOMC chair even if the President nominates someone else for Fed Board chair.
Labor Market Weakening Is Accelerating
- Surveys and corporate guidance point to a faster deterioration in the U.S. labor market.
- QI Research expects rising unemployment and continued layoffs through 2025 into 2026.
Low Hiring, Low Firing Is Fragile Equilibrium
- Powell described a low-hiring, low-firing labor market that risks flipping into rising unemployment if layoffs increase.
- That fragile state raises the chance of a rapid unemployment uptick when hiring stalls further.