Recession Is the New Expansion in Parts of the World: Jack Ablin

The video discusses the repo crisis, highlighting a lack of overnight dollars due to expectations of Federal Reserve rate cuts. It explores the transition from Quantitative Easing (QE) to Quantitative Tightening (QT) and its potential market disruptions, particularly affecting zombie companies. The discussion extends to global economic implications, noting negative potential GDP growth in Japan and the concept of recession as the new expansion in developed countries.

What is one of the reasons for the current repo crisis?

• A lack of overnight dollars

• The Federal Reserve increasing rates

• An abundance of overnight dollars

• A smooth transition from QE to QT

What percentage of companies in the US are considered 'zombie companies'?

• 5%

• 10%

• 20%

• 15%

Which region is most affected by negative overnight rates?

• North America

• South America

• Europe

• Africa

What is the potential GDP growth rate in Japan?

• 2%

• 4%

• 0%

• -2%

What new economic trend is emerging in developed countries?

• Inflation is the new stability

• Expansion is the new recession

• Recession is the new expansion

• Stagnation is the new growth