Originally Posted by
Nantonaku
But would high inflation rates cause a depression either from normal economic forces or due to Fed over-reaction? That would effect Delta's earnings and push down the stock price. It seems like we are headed into unprecedented economic times. Never has inflation been this high with this much debt in the system. I don't see how this doesn't turn out bad for the whole economy. In my opinion the Fed starts easing again later this year, 8% inflation is something we are just going to have to live with. I read somewhere this week that government would be unable to pay 4% on its debt.
Dude, your pessimistic view on everything future looking is hard to ingest. By your posts we should all be looking to build windmills, farming collectives and organizing hunting parties. Am I saying inflation is good, no, do I think a recession is out of the question, no. But US default, depressions, man if those things happen, Delta’s stock is the least of everyone’s worry.
The US is in no threat of either thing happening because there is still demand and growth in our own economy, let alone off shore. We won’t default because some money somewhere will bet on American business. Russia hasn’t defaulted and it is primarily trading with 2 countries. We partner with those 2 and hundreds more.
Is there some type economic pain on the horizon that we haven’t really had for 30+ years, probably. The world is a different place though since the 70/80/90s, might not be that bad, I don’t recall it being awful then to be fair, just different than now.