Okay, I am a math nerd. I believe in statistics, trends and history. It is agreed that recessions are going to happen. It appears to me that the hotter the expansion, the deeper the recession.
The economy was super hot in the 1920s. Very little regulation and businesses were gambling like crazy. Then the crash. Banks failed, people lost jobs, companies failed. FDR started regulating banks , and there was not another failure until Regan deregulated and within a year we had the savings and loan fiasco.
IN the early 2000s, we were growing at a phenomenal rate. Banks were making loans and insuring those loans with money they didn’t have. The we had the largest recession since the great depression. We bailed out the banks and created regulations that cause slow but steady growth. The longest period of time without a setback.
The economy is now expanding at the fastest rate that I have ever seen. Banks are now allowed to gamble. While this is good for the short term, I know there will be a setback soon. The first date I can move my retirement money from the stock market into a Credit Union is February. I pray that the crash does not come before then,
The only people that benefit from big growth and big crates are the wealthy. The rest of us get small gains during the growth and large loses during the crash. It is best for the majority of us is to have limited regulation. This keeps the economy from expanding too fast and dropping too drastically.
Moderation and long term thinking are best. Keep the economy from being bipolar.