Danielle DiMartino Booth: The Recession the U.S. Needs is Already Underway
Danielle DiMartino Booth: The Recession the U.S. Needs is Already Underway
Palisdes Gold Radio: 12-11-2024
Tom Bodrovics engages in a discussion with Danielle DiMartino Booth, CEO and Chief Strategist for QI Research, former Fed Insider, and author of the book "Fed Up."
Danielle stresses the importance of monitoring private sector actions, particularly in 2025 due to recent job losses and the significance of shelter inflation's impact on the Federal Reserve. She highlights an upward trend in unemployment rates and potential recession expectations, but does not believe one is necessary.
The conversation touches upon central bankers' confidence bubble and its implications for the current economic climate.
They also delve into commercial real estate markets and the potential repercussions on banks and markets. Serious concerns in this sector have led to double defaults on commercial mortgage-backed securities, with regulators putting pressure on credit rating agencies not to downgrade them.
Tom also inquires about other financial burdens, such as rising unemployment, falling house prices, and mortgage delinquencies, which contribute to significant household financial pressures.
Canadian banks have announced larger losses but maintain they are contained. Banks attempt to slow charge-offs by modifying loans and extending terms, but this approach has limitations due to the possibility of re-default.
Danielle concludes the conversation by encouraging listeners to maturely face sacrifices and embrace long-term benefits that come with cutting government waste.
Time Stamp References:
0:00 - Introduction
0:44 - The Economy & Stats
2:49 - Unemployment & Layoffs
3:38 - Powell & Trump
4:37 - Revisions & Recession
6:25 - Bankruptcies & Rates
8:13 - C.B. Confidence/Hubris
11:22 - Dollar Strength & Trump
14:57 - Inflation Thoughts
16:47 - Housing Confidence
19:38 - Commercial Real Estate
20:57 - Consumers & Banking
22:37 - Safe Assets & Dividends
24:14 - Buy Now Pay Later
? 26:42 - 2025 and Gov't Spending
27:49 - Wrap Up
Talking Points From This Episode
Danielle emphasizes investors monitor private sector actions amid job losses, shelter inflation, and potential recession concerns.
Concerns center around Central bankers' 'confidence', commercial real estate risks, and household financial pressures.
DiMartino cautions listeners that Trump cuts may require short to medium term sacrifices to gain long-term benefits.