[mccorrinall]

Isn’t a recession necessary to curb inflation? Powell said that economy needs to cool down:

When rates are hiked, a home with a mortgage, using credit cards or seeking loans to start a business become much more expensive. That results in people stopping purchasing homes, cut down on spending, think twice about starting a business. In addition to that companies will lay off workers and enact hiring freezes.

Everyone says it, the signs are obvious, and people here still think we won’t land in a recession.

Kinda feels similar to the irrationality of tesla investors, where everyone knew that the company is overvalued and needs to come down. Yet people continued buying or didn’t want to sell. Why? I would like to know.