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U.S. stock futures inch higher after Friday’s Wall Street selloff; oil
falls as OPEC+ extends output boost
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U.S. stock-market futures advanced Sunday, after Wall Street ended last
week with its worst session since April.
43 minutes ago
Seed Newsvine
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Joseph Weisenthal at Business Insider describes this as a “magical threshold of debt.” But there’s nothing magical about it.
ReplyDeleteAs I’ve explained before, the precise mechanism for this isn’t well understood. I suspect it may largely be an effect of signaling. Very high levels of debt indicate the economy has broken down and that government’s room for ameliorative spending may be reaching its limit, which causes further private contraction. So you get into a reflexivity trap.