[Yoho]

Originally Posted by Slava

Well people are highly levered, but that’s real estate for most people all the time. You’re putting down a smaller percentage and the remainder is borrowed money. I agree that people are susceptible to rate hikes, and job losses, but I do wonder when that’s not the case?

I’m not sure there’s a recession imminent. Honestly, we’ve heard about the imminent recession for about 18 months now. At what point is that call just wrong? Eventually, we’ll have another recession, but it’s hard to say when that happens. Things could slow, not technically recede, and then we recover?

It’s an incredibly interesting time though. The consumer is strong, spending money and job losses are low along with unemployment. On the other hand, rates are rising, lending is slowing and there are deflationary factors as well.

Rarely has an inverted yield in the bond market been wrong about an upcoming recession.