Goldman Sach’s CEO and chief economist predicted the economy was going to start to turn due to the high tariffs.
Goldman Sach’s throws caution to the recent stock market rally over the past 4 months stating: “If the most recent tariffs, like the April tariff, follow the same pattern that we’ve seen with those earliest February tariffs, then eventually, by the fall, we estimate that consumers would bear about two-thirds of the cost.”
The combination of a very soft job reports 2 weeks ago and the increasing cost of all consumer goods is a highly unstable concoction that will slowly wreak havoc on the stock market for months and potentially years to come.
“I don’t think this will matter a whole lot to the Fed, because now they have a labor market to worry about, and I think that’s going to be the dominant concern.”
The Feds can drop their rates in September, but that’s not going to produce the massive consumer mortgage loans and corporate business borrowing that is anticipated.
Goldman predicts that the Bad Moon is Rising in the upcoming months:
Creedence Clearwater: 1969.
I see the bad moon rising
I see trouble’s on the way
I see earthquakes and lightnin’
I see bad times today
Ah, don’t go ’round tonight
Well, it’s bound to take your life
There’s a bad moon on the rise
I hear hurricane’s a-blowin’
I know the end is comin’ soon
I feel a river’s overflowin’
I hear the voice of rage and ruin
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