Economist David Rosenberg Warns of a Crash Landing

Looks like economist David Rosenberg is not feeling super optimistic about the US economy. The economist, who is known for his often doomsday predictions, is warning of an incoming crash landing and recession.

His worries seem to be based on data that the Federal Reserve has been collecting. Specifically, Rosenberg is pointing to the shrinking gap between the 10-year and three-month U.S. Treasury rates.

Facts and Figures

Accoring to Rosenberg, the 10-year and three-month U.S. Treasury rates have been narrowing in their discrepancies, with the 10-year rates getting “closer and closer” to the three-month rates.

Rosenberg adds that the 10-year borrowing cost is already below those of three-month debts – which he finds to be an indication of a recession.

What Does This Mean?

Rosenberg believes we could be looking at a period of economic instability due to this narrowing rate gap.

“This flattening of the yield curve is a pretty reliable predictor for a recession,” Rosenberg wrote.

He added that it’s nearly impossible to call the “timing or scope of the crash landing” but that he feels confident that the 10-year-over-three-month relationship will continue its downward trajectory.

So, Is Rosenberg Right?

That’s a tough question. Although Rosenberg’s theory appears to hold some ground, there may be other data points and factors that need to be considered. Recession or no recession; that’s for us to find out in the coming months!

Wait a minute…did Rosenberg just predict a recession?! Oh no! Let’s start stocking up on the canned goods now! Just kidding. But it is worth keeping an eye on the economy and getting more insight into the factors that could be pushing it into a recessionary phase.

To sum it up:

  • Economist David Rosenberg is predicting a crash landing and recession, based on data from the Federal Reserve.

  • The narrowing gap between the 10-year and three-month U.S. Treasury rates appears to be a tell-tale sign of impending recession.

  • It’s impossible to determine timing or scope of the crash landing right now.

  • It’s worth keeping tabs on the economy to gain more insight!