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Very strange to see the US spending like we are in a recession while calling for a "soft landing."
As highlighted by The Kobeissi Letter, the US is now spending 44% of GDP per year, the same levels as World War 2. Deficit spending alone is a massive 6% of GDP per year. Since the debt ceiling crisis, the US has been borrowing ~$14 billion PER DAY to cover deficit spending. By 2033, Bloomberg projects deficit spending will be ~7% of GDP... Source: CBO, The Kobeissi Letter
Cash now earns more than the S&P 500 by the largest margin in 23 years
Source: TME, Bloomberg
Is the market too complacent? retail investor flows are exceeding 2021 highs
Source: Topdown charts, vanda research via FT
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