Biden DISASTER – First Time In 50 Years!
(UnitedVoice.com) – The COVID-19 pandemic and its lockdowns have had a terrible impact on the economy. Inflation is soaring, and President Joe Biden’s administration hasn’t been able to get it under control. Now, stocks have taken their worst fall since the first half of 1970.
On Thursday, June 30, the Nasdaq dipped 149.16 points to 11,028.74, a 1.3% fall. The S&P 500 dropped 33.45 points to 3,785.38, or 16.4%. The Dow Jones Industrial Average plummeted 253.88 points to 30,775.43, a 0.8% drop for that index. While stocks are tumbling, inflation has remained stubbornly high, causing Americans to pay more for nearly everything and hurting families.
It takes about 6 months for the economy to follow the stock market. Massive layoffs should happen in second half of 2022. Housing market will follow as new home buyers will be absent.
— HOZ (@MFHoz) June 30, 2022
Why is it happening? During the first year of the pandemic, the Federal Reserve lowered interest rates to zero, hoping to stimulate the economy. Economists feared lockdowns would throw the country into a recession. Fortunately, that didn’t happen, and even as people stayed home, the economy kept chugging along.
At the end of 2020, inflation started to creep up. When Biden took office in 2021, his administration almost immediately signed a massive stimulus package into law for the country even though former President Donald Trump had signed one into law just a few months before. Meanwhile, his administration downplayed the rising prices for almost a year.
In 2022, the Federal Reserve began raising interest rates to cool the economy and lower inflation. However, the national bank risks pushing the country into a recession, contributing to the stock market decline.
So are Americans forced to prepare for the worst-case economic scenario while hoping the government actually does its job to prevent a disaster? Or should they prepare for an economic depression?
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