The Show Notes: Student Loan Forgiveness, Russia Pushes Europe, & The Looming Recession
Welcome! Your 401(k) may be hurting. On Tuesday the Nasdaq recorded its largest single-day decline since September 2020. Ouch.
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Clip of the day: Well done.
Student Loan Forgiveness FOR REAL
Joe Biden is giving serious consideration to forgiving some or all federal student loans. The $1.7 trillion that is collectively owed by Americans has not been paid down since the pandemic began thanks to the Biden administration pausing federal student loans. Roughly a quarter of all borrowers are in delinquency or default. The relief program has been in effect for two years and is scheduled to expire on August 31st. Here’s more from CNBC and a good take from Senator Tom Cotton:
Russia Shuts The Gas Off
Gas prices are spiking across Europe on the news of Russia turning off pipelines to Poland and Bulgaria. Russia demanded that gas payments be fulfilled in Rubles to serve as a lifeline for the struggling currency. European nations are refusing to comply. More from The Wall Street Journal:
Russian energy giant Gazprom PJSC said on Wednesday that it had stopped supplies to Bulgaria and Poland “due to nonpayment in rubles.” Bulgaria and Poland said the move was a breach of contracts. Other large European gas consumers like Germany and Italy haven’t been affected so far.
Analysts at energy consulting firm Rystad said that “Russia has fired the first shot back at the West,” wielding energy as a weapon.
Recession
Deutsche Bank was the first financial institution to officially predict a mild recession earlier this year. The move was followed by similar claims from other banks. Deutsche is raising the stakes now claiming a major recession is ahead. This is from CNN:
"We will get a major recession," Deutsche Bank economists wrote in a report to clients on Tuesday.
The problem, according to the bank, is that while inflation may be peaking, it will take a "long time" before it gets back down to the Fed's goal of 2%. That suggests the central bank will raise interest rates so aggressively that it hurts the economy.
"We regard it...as highly likely that the Fed will have to step on the brakes even more firmly, and a deep recession will be needed to bring inflation to heel," Deutsche Bank economists wrote in its report with the ominous title, "Why the coming recession will be worse than expected."
Ukraine Headlines:
Russia suffers another fire at supply depot. - WSJ
How does Ukraine keep intercepting Russian military communications? - NPR
More than 20,000 Ukrainians have been processed at the US-Mexico border since mid-March. - CNN
Trevor Reed has been released, but other Americans remain detained in Russia. - CNN
Ukraine shot down Russian plane with help from US intel. - Washington Free Beacon
Does the exit ramp look more attractive to Putin now? - Washington Post
The rest of the news:
Warren tries to 'light the fire of urgency' for Democrats. - Politico
Supreme Court takes up case of a coach and his prayers on 50-yard line - Washington Post
US home prices rose by nearly 20% year-over-year in February. - CNN
New Hampshire starts with lead for first place on Dems' 2024 voting calendar. - Politico
U.S. Borrowing Is the Wuhan of Global Inflation - National Review
Robinhood shares plummet as company announces layoffs. - CNN
Tucker Carlson calls Kevin McCarthy 'puppet of the Democratic Party'. - Washington Free Beacon
Twitter says mass deactivations after Musk news were ‘organic’ - NBC
Abortion and the Supreme Court. - WSJ
US out of the ‘pandemic phase’ of COVID-19, Dr. Anthony Fauci says. - NY Post
Tweets that caught my eye: