A recession is coming. Who will take the blame?

All booms end in recession. So who will accept the blame for the next one?

Of course, nobody will volunteer to take any portion of the blame.

Yet fingers will most assuredly be pointing.

  • Trump will blame the Fed for hiking too fast.
  • The Fed will blame Trump for starting a trade war.

Scarcely anyone will blame fractional reserve lending, lack of a gold standard, Congressional stupidity, or central bank cheap money and their bubble blowing tactics.

It is a given that mainstream media will not remotely come close to pointing a finger in the proper direction.

Mike "Mish" Shedlock

Comments (24)
No. 1-18
Ted R
Ted R

Well put Mish.

shamrock
shamrock

So who was to blame for the recessions that occurred before all those things?

rob_abides
rob_abides

Should be the guy who's been taking credit for it (ahem, Trump), lol.

Carlos_
Carlos_

Trump will blame anyone just anyone. It doesn't matter who. As far as I can tell Trump has never blame himself for anything - ever. How that wasn't a red flag for Trump supporters is beyond me. the buck stops here. Here been anywhere but Trump

Aaaal
Aaaal

Since Trumpty loves to boast, he can claim that he has the biggest crashes!

thimk
thimk

starting this tariff stuff certainly wasn't prudent policy during ultra late cycle tightening.

Curious-Cat
Curious-Cat

I wish it would hurry up and get here!

caradoc-again
caradoc-again

Who was sitting in charge during the heaviest years of excess QE that will make the next recession worse than it need be due to ever increasing debt levels?

Recessions happen anyway, no matter who is in charge.

Zardoz
Zardoz

I’m sure we’ll hear from the Trumplings how it’s all Obama’s fault... or maybe some secret plot directed by Hillary and Soros. Whatever it is, Trump will be presented as a victim, you can bet it will cost you a couple IQ points to hear.

Art Izagud
Art Izagud

History will blame the Narcisism and Nihlism of the culture it the Boomer Generation, who's hard work brought us the Smartphone, yet blinded them to unhealthy relationship practices. Trump is the epitome of this, yet in a good way, as it is healing to be honest about who you are. Now only if they can find a way to reconcile with their homeless children who really just want human connection rather than all of the pampered pleasantries and outdated standards.

Sechel
Sechel

Trump has never been a buck stops here kind of leader. based on his fed bashing it will most likely be powell. can't wait for trump to call him an angry democrat or an obama agent. in fairness though fed is a frequent target of presidents who don't like the punch bowl being taken away. congress too will likely join in and again not a trump thing but the party in power typically does this. a slower economy is not good for votes.

Snow_Dog
Snow_Dog

“Scarcely anyone will blame fractional reserve lending, lack of a gold standard, Congressional stupidity, or central bank cheap money and their bubble blowing tactics.”

wootendw
wootendw

Trump has claimed ownership of the bull market many times so he's made his bed and will have to lie about it.

I believe I remember that Peanuts cartoon, including the missing first & last frames. It was not about the economy.

killben
killben

"Of course, nobody will volunteer to take any portion of the blame."

What blame? Here is another opportunity to open the money spigot and save the world and then strut about it. Who will be the three musketeers this time around? The scoundrels.

Realist
Realist

“A recession is coming”. Of course it is. But when? You have been saying that for years. Eventually you will be correct. But when? I don’t personally expect a recession any time soon, although with all the stupid things Trump keeps doing, I guess it could begin in 2019. But I don’t expect it.

Carl_R
Carl_R

One thing we know for sure is that recessions and depressions existed for as long as there has been an economy, and even are described in the old testament, so they have existed for at least 3000 years. It certainly is true that these days they are less common and less severe than they used to be, so it's kind of hard to blame modern things for making them worse.

KidHorn
KidHorn

The democrats will blame the republicans and vice versa. Same as with everything else. If the dems take control of the house, as expected, the government will be in paralysis in 2019/2020, so nothing will be done to try to fix it.

Jamesross
Jamesross

The voters will blame Trump.