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The article implies it's a mystery, but to me the cause is pretty obvious: Some businesses and consumers had spending patterns that were only viable due to ZIR
by csense 9mo ago
The article implies it's a mystery, but to me the cause is pretty obvious:
Some businesses and consumers had spending patterns that were only viable due to ZIRP, COVID stimulus, and QE. The resulting inflation spike followed by QT and interest rate hikes to fight it led to the current slowdown.
It's almost as if doubling the number of dollars in existence between 2020-2022 had some negative long-term consequences...
[1] https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm https://www.federalreserve.gov/monetarypolicy/bst_recenttren...
- novia 9mo agoClaire's was mentioned as one of the bankruptcies, and surely their business model would have been affected by tariffs
- Isamu 9mo agoSo you reach back to 2022 for the problems cited in 2025? I guess nothing else happened this year that could affect the economy. Nope, nothing.
- tim333 9mo agoCouple of other contributions: Tariffs all over the place. Many billions going into AI data centers leaving less for normal businesses.