In an over-leveraged environment, a recession was inevitable. The Ukrainian war will just speed it along.
And this article does not even mention the unfolding real estate bust in China.
Prediction: As usual, the government and the FED will hyperreact, sowing the seeds for more speculation, and starting another boom-bust cycle. We never seem to learn that encouraging borrowing to juice up economic performance always creates distortion.
Soon I will reference a great article (not online) that will show parallels to how the late 1960s’ debt begot the 1970s stagflation, a parallel to today.
Remember politicians always call spending “investment,” and it will “pay for itself.”