We are living in a black swan economy

By Michael Lodge on March 04, 2024

Michael Lodge - The Business Advisor / Mediator - 424.542.7299 - www.lodge-co.com

In the current economic chaos, ominous signs are converging to paint a bleak picture of what some are calling a "black swan economy." The term "black swan event" is typically used in finance to describe an unforeseeable and highly negative occurrence that can have widespread ramifications. While such events are notoriously difficult to predict, the buildup of red flags in various sectors is indicating that a significant crisis may be looming on the horizon. One concerning trend is the rapid growth of car loans and repossession rates for banks, indicating potential vulnerabilities in the financial system.

The real estate market is also showing signs of distress, with escalating foreclosures in both residential and commercial sectors leading to more properties being put up for auction. This trend is further compounded by the cash constraints faced by many banks, which are struggling to maintain liquidity in the face of mounting challenges. Concurrently, the labor market is witnessing a surge in daily layoffs as businesses seek to reduce costs, exacerbating the strain on individuals and families already grappling with economic uncertainty.

Moreover, the agricultural sector is experiencing its own set of challenges, with farmers in the US and the EU facing difficulties due to various factors such as water treaties and supply chain disruptions. The dwindling inventory of essential products like beef is indicative of the broader impact of these issues on food security and prices. As these red flags continue to multiply and intensify, it becomes increasingly evident that we are navigating through a precarious economic landscape where the convergence of multiple crises may lead to the emergence of a full-fledged black swan event. In such times, vigilance, resilience, and proactive measures are crucial for individuals, businesses, and policymakers to navigate the uncertainties ahead and mitigate the potential fallout of a deeply troubled economy.

With a nation in debt and it growing by $1 trillion dollars every 100 days, government may be the biggest blackswan ever. Politicians in Congress and the Whitehouse have shown they are the problem and they don't care.

Book Michael for a one-on-one video call on Expert Session.