Post by
Winston1 on Jun 12, 2022 12:05pm
The only thing we have to fear is fear itself
As the great Franklin D. Roosevelt said in his 1933 inaugural address at the depth of the Great Depression, "the only thing we have to fear is fear itself." During the Great Depression everyone thought life would never return back to normal, but it did. During the 1987 flash crash, the 2000 dot com meltdown, the 2008 financial crisis, and the March 2020 Covid crash everyone thought life would never return back to normal, but it did, more or less. Now in 2022 everyone fears sky high inflation, rising interest rates and a recession. Don't worry about it, this too shall pass and life will return back to normal. A deep recession will cure sky high inflation and sky high gas and food prices. The fed will likely keep raising rates until we get into a recession, but then they'll start cutting rates to get us out of a recession. Take the long view, it's not any different this time. The world is not ending and things will eventually get back to normal.
Comment by
Winston1 on Jun 12, 2022 1:07pm
That's true, but Xebec is not a highly leveraged deeply indebted company with over $1 billion in debt like some other companies out there. I believe they can survive a deep recession lasting 1-2 years, whereas many other companies won't. They'll get a sufficient amount of debt financing plus government grants to last them until the good times start rolling again.
Comment by
Winston1 on Jun 12, 2022 1:28pm
Yes, nobody knows what the future will hold, I'm just using a simplistic thought exercise for entertainment purposes only. If you're not entertained I'll issue you a refund.
Comment by
tony08 on Jun 12, 2022 12:43pm
Agree with you Winston, however there is something that really scares me, it's global warming, and it will never come back like before.....Our children and grandchildren will have to adapt.... The only positive thing with this is that it should benefit Xebec
Comment by
Winston1 on Jun 12, 2022 1:10pm
Humanity will adapt, even if we have to become extremophiles.
Comment by
ZouZS3 on Jun 12, 2022 1:19pm
Ray Dalio said he expects central banks around the world to start cutting interest rates by 2024 as stagflation hits the global economy. The billionaire investor said he expects a period of sustained inflation to harm US markets to such an extent that theFederal Reserveis forced to start slashing rates before the 2024 election
Comment by
Winston1 on Jun 12, 2022 1:32pm
That I believe. The fed will keep raising rates and continue QT until a recession hits, then they'll reverse course, start cutting rates and start QE again, and the cycle continues ad infitinitum.
Comment by
Gann999 on Jun 12, 2022 2:03pm
They don't want to intentionally cause a recession it's a delicate balancing act they may cause one but not intentionally they will do what they can to avoid one.