Why is everyone so optimistic about the economy?

Question

In the last two weeks there have been some ominous events. Are these not as big a deal as they seem to me?https://www.barrons.com/articles/bank-of-america-stock-bond-losses-97bf300ehttps://archive.ph/Q46oBhttps://www.bloomberg.com/news/articles/2024-04-03/business-bankruptcies-jump-as-slow-wave-of-failure-speeds-uphttps://archive.ph/BDm4Whttps://www.bloomberg.com/news/articles/2024-03-30/clo-managers-fret-altice-downgrade-may-trigger-wider-selloff-of-riskiest-bondshttps://archive.ph/4ElrOhttps://www.wsj.com/finance/banking/banks-are-extending-office-loans-are-they-also-pretending-f62ddd80https://archive.ph/WQ6XLhttps://www.bloomberg.com/news/articles/2024-03-19/real-estate-pain-is-showing-up-in-collateralized-loan-obligations-closhttps://archive.ph/Wc92Q

dexwiz · Accepted Answer

We are in a correction period, so some bad things will happen. Journalism loves the superlative right now, so any headline tends to be scary. What would be more concerning? Some announced losses, or a lies about how "everything is fine?" In the long term, a short term correction isn't terrible. People held their breath for years about the next downturn, and it is almost a relief that it is here.We are also gearing up for proxy wars, the first ones have already started. There will be some amount of economic squeeze in order to motivate recruits and workers. I don't support such actions, but it doesn't change reality.

ungreased0675 · Answer

At least some of it is because it&rsquo;s election season.