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Debt-Fueled Spending Won't Create Growth

“2nd Derivative Effect” and the ongoing cost of the stimulus. With the passage of the $1.9 trillion  “American Rescue Plan,” will the math of debt to growth change? Now, even Deutsche Bank credit strategist, Stuart Sparks, got the memo. “History teaches us that although investments in productive capacity can in principle raise potential growth and r* in such a way that the debt incurred to finance fiscal stimulus is paid down over time (r-g 0),  it turns out that there is little e...
United States Deutsche Bank Federal Reserve Rescue Plan Stuart Sparks Unemployment Benefits

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07Apr2021 Pre-Market Commentary: Wall Street Struggles For Direction Ahead Of Fed Minutes, DOW Down 34 Points, Nasdaq Down 0.1%, Silver Below 25.00, Bitcoin Sinks To 56300

U.S. trade deficit widens 4.8% to record $71.1 billion and gold down 0.4% at $1,735.90/oz (SPY -0.2%). Biggest premarket movers: Beyond Meat, Nokia, Li Auto. Here is the current market situation from CNN Money European markets are mixed. The DAX is higher by 0.06%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.43% and 0.07% respectively. What Is Moving the Markets Here are the headlines moving the markets. UAE Presents Phenomenal Plan To Boost Its Position As Oil Hub Three ...
United States United Kingdom Piper Sandler Brian Castrucci Kyle Clark Shaktikanta Das

Can The US Borrow Its Way To Higher Growth? (Spoiler: No)

by Tyler Durden Wednesday, Apr 07, 2021 - 08:02 AM In its chart of the day, DB credit strategist Stuart Sparks writes that history teaches us that although investments in productive capacity can in principle raise potential growth and r* in such a way that the debt incurred to finance fiscal stimulus is paid down over time (r-g
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