Counterpoint: Why The Crash May Not Materialize
While the risks are real, a full-blown crash isn’t guaranteed. The U.S. still retains key advantages: (a) the world’s reserve currency, (2) deep and liquid capital markets, and (3) a resilient, innovation-driven economy.
The Federal Reserve has shown it can act decisively in times of stress. The trade-tensions sparked by tariffs are already easing, and the market bounce-back reflects that.
Moreover, global alternatives remain limited - making U.S. assets, even at higher yields, relatively attractive. If inflation remains contained and growth holds up, markets could digest higher rates without unraveling. In this more benign scenario, the Moody’s downgrade becomes a wake-up call - not a trigger for collapse.
Replies to: "From Forbes:"
- Remember, this is the economic indicator to watch [LINK]
- Chris94 - 7:55am 5/22/25
(13) [View All]
- The bond market is voting the only way the the Mango freaks understand; with its rates on the “big, - Frank L - 1:46pm 5/22/25
- From Forbes: - Hensou - 11:28am 5/22/25
- Jobs numbers are more relevant. - PaND - 10:49am 5/22/25
- The debt doesn't matter, it's irrelevant, don't worry about it. [NT] - iairishcheeks - 10:40am 5/22/25
- Is this the new pearl clutching talking point? I remember when it was the stock market and tariffs - TampaIrish - 10:20am 5/22/25
- Exactly. Pay attention Baron. You voted for instability and chaos. [NT]
- conorlarkin - 9:39am 5/22/25
- Keep hoping for disaster, Starbucks. [NT]
- BaronVonZemo - 10:54am 5/22/25
- You lack integrity. [NT] - ND521 - 2:18pm 5/22/25
- Selective memory? - Hensou - 9:45am 5/22/25
- Keep hoping for disaster, Starbucks. [NT]
- BaronVonZemo - 10:54am 5/22/25
- True, but economic growth would have been choked off if taxes were allowed to go up. - Curly1918 - 8:19am 5/22/25
- So which one is it Curls? You now advocating more reckless Mango tax cuts and spending - Frank L - 1:36pm 5/22/25
- See above. I'm an equal opportunity political critic. [NT]
- Curly1918 - 3:46pm 5/22/25
- I take it that this is a no to the question then? [NT] - Frank L - 3:54pm 5/22/25
- See above. I'm an equal opportunity political critic. [NT]
- Curly1918 - 3:46pm 5/22/25
- So which one is it Curls? You now advocating more reckless Mango tax cuts and spending - Frank L - 1:36pm 5/22/25