The newest trend in the United States is to root for a recession.
It is one thing to predict a correction, bear market, recession or depression due to fundamentals that exist in the marketplace. It is quite another to actively want to see an economic downturn happen for the purposes of arbitrage whether it be financial, psychological or political. Globalization means that people, governments, markets, economies, technologies, communications, and fortunes are all connected regardless of geographic location. The biggest advocates for globalization and neoliberalism have strangely turned into the biggest advocates for a cataclysmic economic event that would destroy everything that they supposedly support. Recessions are not localized with a global economy, recoveries may be localized in terms of timing, but recessions are not.
Who is calling for a Recession? Corporate Media in the United States.
There are many outside of the United States who criticize the Corporate Media of the United States for being insipid tools of propaganda that fail to inform the public. Corporate Media supposedly provides news that would appeal to both the civic-minded and those that wish to use the knowledge for their day-to-day lives. Unfortunately, this is not the case as tabloid exploitation, ratings, page views, and narrative rule the day.
In the United States, the right to free expression and free press is guaranteed in the First Amendment of the United States Constitution. It is a wonderful right that is distinct in the world as it is a prohibition on what the United States Government can do to abridge freedom of speech. This guarantees that even the most controversial and despicable opinions per social mores can be said without political retribution by the U.S. Government. If someone wants to create the Church of Joseph Stalin or Adolf Hitler, they can in the United States. If an organization wants to organize a protest against a road being built in a particular location, they can do so. If a group wants to purchase a billboard warning that there is a known speed trap in a particular city or town to drivers, they can do it. If a media personality(ies) want to express their hope for economic recession or crash for the purposes of hastening the exit of U.S. President Donald Trump, they have the right to do it.
However, the media elite or chattering class, need to be forgiven for they do not know what they are doing nor inspiring to inflict on a global level. It’s not about the United States, it’s about the world. It’s a parochial ignorance that goes against the values of the individuals espousing, cheerleading and advocating.
In the United States, news is neither objective nor free of bias. In fact, news does not shape how Americans understand the world, but rather the forms of political entertainment produced by the corporate media do. Panel shows with seven boxes of people yelling at each other, so-called expert pundits supporting a narrative to manipulate discussion into particular camps, and political pundits masquerading as comedians (merely based on tone and usage of coarser language) dictate how Americans perceive not only their country, but the world around them. It’s a very sad spectacle and other nations’ media have started copying the business model.
When members of the media start saying that a particular mindset, perspective, values or word choice is valid… most Americans really do accept it’s validity. It’s a very scary proposition when considering something as serious as a market crash. Not just for Americans, but for the entire world as the United States of America has such a powerful economy that it can break other nations around the globe and create a domino effect.
It’s not about being pro-Trump or anti-Trump, it’s about encouraging the tanking of a global economy and influencers hypocritically undermining their own values. It seems nonsensical from a pure political perspective as the justification for Globalism could be destroyed simply by another recession or depression brought on by American contagion.
Corporate Media Support for an Economic Crash is Counter-intuitive
Remember when Comcast stock was $5.75 per share. Those were good times, right?
It took 600 days for Comcast shares to lose 60% of their value during the Financial Crisis (this was not peak to trough either). Comcast recovered quite nicely in the wake of the Financial Crisis rising nearly 7 times in share value.
The mere idea of Comcast shares falling 60% from the price that it is currently would not make Comcast brass very happy and to cheerlead such an outcome on the air is reckless. Those are losses coming from employees, executives, long-time shareholders, and the ones most hurt are millennial investors who jumped into the market during the mid-2010s. Comcast having a valuation of $13.20 per share would be a terrible prospect and that’s what a market crash/recession/depression would do.
AT&T is the parent company of HBO, CNN, Cartoon Network and Turner Sports. It has diversified holdings and is a similar company to Comcast, but with a few differences:
- AT&T has nationwide (U.S.) wireless network services.
- AT&T does not own a theme park, but has a licensing deal with Six Flags.
- AT&T competes nationally in Cable/OTT Streaming services and with Satellite Television.
Wishing for a recession means possibly losing half of share value and over $110 Billion in wealth destroyed. Is that what Bill Maher wishes for?
The same people who watch John Oliver and absorb his Progressive/Socialist views for free on YouTube are the ones who would lose the most from a recession. Dreams denied, postponed, and futures destroyed.
But a recession feels good, until you realize that you do not have the money to live the same life that was enjoyed before. Recessions mean layoffs, violence, suicide, toxic relationships, and greater outrage. It’s not necessarily a “survivable event”.
The Global Impact of an American-Induced Recession
There were several reasons for the Financial Crisis and the Great Recession. Many of these reasons were caused by events happening in the United States and very few countries were able to avoid recessionary conditions and symptoms. Equities markets plunged across the world and unemployment surged.
UK Unemployment Rate
DAX (German Equity Index)
CAC 40 (French Equity Index)
IBEX 35 (Spanish Equity Index)
Unemployment Rate in the European Union
TSX (Canadian Equity Index)
Canada Unemployment Rate
IPC (Mexican Equity Index)
Mexico Unemployment Rate
Venezuela Unemployment Rate
South Africa Top 40 Index
South Africa Unemployment Rate
Nikkei 225 (Japanese Equity Index)
Japan Unemployment Rate
OMX Stockholm 30 (Swedish Equity Index)
Sweden Unemployment Rate
NZX 50 (New Zealand Stock Index)
New Zealand Unemployment Rate
To root for a market crash is to deny the fact that the world is interconnected and it is also an expression of economic ignorance as far as the economic might of the United States. Not everywhere has recovered from the Great Recession either (even within countries that have recovered) and the ECB still sports negative interest rates.
Secessionary Movements and anti-Globalism
An economic crisis of any kind would be the equivalent of bringing an oil truck to a bonfire. The European Union is tearing apart at the seams, secession efforts, instability in Central America, a dictatorship in Venezuela, Brazil and Argentina are experiencing tenuous times once again in the aftermath of corruption scandals, trade war between China and the United States, and a potential debt problem in Canada are the underlying issues of the time in the developed and largely developing world.
If the United States has a recession, the European Union could in some way resemble this map in a little more than a decade. The idea of staying together in a supranational union or even in a country with different regions and cultures comes into question. Why? Because there will be a desire to insulate from global or regional contagion.
Violence, instability, insecurity, and the destruction of the status quo would take place. The environment is ripe for a mass governmental disruption and a recession in the United States would bring about it. It is far more difficult for national economies to recover than in the wake of the Great Recession.
The results would be the opposite of what these U.S. Cable News Commentators would want, but they are blinded by the short-term and expected parochial results that the actual results would be more devastating on a global scale than they would have imagined.
Disparate Impact on Ethnic Groups in the USA
This is what these individuals rooting for a market crash want? These are the supposed bedrock ethnicity bases of the Anti-Trump coalition and they would be hurt the most by a recession that is cheerleaded by the chattering class.
The desire for political control at any cost will hurt everyone, but some are more susceptible than others to economic hardship.
Talking about desiring a recession on a national stage leads to fulfilling those desires…
Once an idea hits U.S. Cable News Outlets, it’s unfortunately a mainstream concept. No longer is it just a wacky pipe dream on Twitter, it’s a mainstream concept that is seemingly approved. Rooting for a recession or deeming a recession to be a good thing is horrible, but it is deemed acceptable in some circles that are clearly expanding. United States Corporate Media jawboning and talking down the economy may prove effective to serve as a catalyst to a downward spiral that is the epitome of cutting off one’s nose to spite the face.
Can we survive a recession? Why should a recession be such a topic where it comes across as optional or even serve as a feel-good political tool.
It’s destructive. It’s a declaration of economic war posed by American media personalities against their fellow Americans and citizens of the world.