A Recession Indicator is Flashing Red

GrowthSpurtA Recession Indicator No One Is Talking About - and It's Flashing Red -Mauldin Economics
"The yield curve isn't the only sign recession is coming. Rising corporate misconduct says the same. Business scandals seem to peak at the end of every growth cycle. I think that’s because CEOs are human, and humans get overconfident when everything is going well. Allegations of negligence and/or misconduct at public companies now seem to be growing again....

Why anyone would own shares in such companies, I don't know. For many, it's probably because they only care about a rising stock price. And they've been getting it. But if the stock is rising not because the business is well-run but because it is borrowing money to buy back its own shares, the gains won't last....With creative destruction now scarce, as zombie companies refuse to die and monopolies refuse to improve, we also struggle to generate even mild economic growth. I think those facts are connected. And that makes corporate corruption and incompetence a problem for everyone...Such conditions haven't ended well in the past."

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