politics

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🔻 New data shows that American households’ investments in the stock market have hit one of the highest levels in history. So, where’s the catch?!

According to analysis by the 3Fourteen Research team, if the S&P 500 drops just 10%, about 12% of the entire U.S. GDP could vanish from household wealth—just like that!

This level of loss has historically gone hand-in-hand with recessions—think the 2008 financial crisis, the dot-com bubble burst, or the economic chaos of the 70s.

📌 Every time this 12% shock to GDP has hit while the Fed was tightening (hiking rates and shrinking its balance sheet), a recession followed 80% of the time. If the Fed doesn’t act soon—or if the government doesn’t roll out tax cuts—we might be heading right back into the same mess...

2/
Some believe the Federal Reserve is intentionally steering things toward a recession to burn off some of the pandemic-driven liquidity by crashing the stock market. But here’s the issue: this won’t really fix inflation—it just wipes out household wealth.

Funny how the focus is on market drops, not on why households are so overexposed in the first place. Maybe the real issue is a system that leaves people with no safe way to build wealth.