‘We can see a recession coming’: Financial experts see an overheating economy amid rising rates in the housing market, while Warren Buffet’s favorite metric even predicts a CRASH

Thursday, August 2, 2018
By Paul Martin

Donald Trump’s economic boom could quickly turn to bust as financial experts say a recession is possible
Stifel Chief Economist Lindsey Piegza told CNN Monday Wednesday that the ‘housing market is throwing up a very large red flag’
Berkshire Hathaway boss Warren Buffet even predicted a possible crash, based on his own stock market metric, the ‘Buffett Indicator’
Earlier this week, Trump’s economic policymakers insisted the robust economic growth marked in the April-June quarter will maintain its pace
But few economists outside the administration agree with that assessment
There is also concern that the trade battles pursued by Trump could endanger economic growth over time

DAILYMAIL.COM
2 August 2018

Financial experts say Donald Trump’s economic boom could quickly turn to bust and that rising rates in the housing market indicate an overheating economy.

Stifel Chief Economist Lindsey Piegza detailed her concerns Wednesday during a segment on CNNMoney Markets Now with Richard Quest.

‘The housing market is throwing up a very large red flag in our opinion, suggesting that maybe this four percent gain that we saw in the second quarter is not sustainable,’ Piegza told Quest.

‘Home sales have actually been on the declined for five of the past six months. and also, one of the biggest concerns is that as we’re seeing whole price appreciation continue to rise, incomes are very stagnant.’

Piegza added: ‘We’re seeing a growing divide between the cost of a home and the ability for the average American to afford that home purchase.

‘We are not there yet… but eerily similar to what we saw leading up to the housing crash.’

Berkshire Hathaway boss Warren Buffet even predicted a possible crash, based on his own stock market metric, the ‘Buffett Indicator.’

The metric is at an all-time high, according to the chart seen on MSN Money.

The indicator shows that at ‘nearly 149%, the total market cap to GDP ratio has never been higher. It’s even higher than the 145% peak we saw during the dot-com bubble,’ according to the report.

Earlier this week, Trump’s top economic policymakers insisted the robust economic growth marked in the April-June quarter will maintain its pace.

Policymakers also said that Trump respects the Federal Reserve’s independence despite his condemnation of the central bank for raising interest rates.

‘We as an administration absolutely support the independence of the Fed, and the president has made it clear that this is the Fed’s decision,’ Treasury Secretary Steven Mnuchin told ‘Fox News Sunday.’

He said Trump’s critical statements ‘are really more just comments saying as interest rates are going up, it’s something that the president has a concern’ about.

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