TYNS - Perhaps Jay Powell Just Got A Bad Case Of Deja Vu
Jesse Livermore said, "History repeats itself all the time in Wall Street." Well, it certainly looks like there is a decent chance we are now repeating the 1937 episode Ray Dalio recounted a while back. The similarities are simply stunning. Below are a few unedited excerpts from his piece. The only change I made was to replace his charts tracking the 1937 experience with ones that plot our recent experience.
After the first tightening in August 1936, there was one in March 1937 and another one in May 1937… As a result of reserve tightening,