13 December 2023
The “Everything Bubble,” encompassing bonds, real estate, and stocks, is showing signs of collapse in 2023. Banks are distressed due to Federal Reserve’s quantitative tightening and interest rate hikes, causing bond values to drop. High corporate default rates are rising, with expectations of further increases in 2024. The housing market is stagnant, with high prices and interest rates, leading to affordability issues and potential bailouts for struggling homeowners. Overall, the economic landscape is strained, with looming concerns over further deterioration in 2024.