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Now, the big issue is why did they keep doing it even after, um, recovery was from, from the, uh, uh, financial crisis will was well un underway. Uh, we had a, um, uh, tech technology, uh, companies were much, much higher. And this is precisely what we got in, in, in the past year as technology stocks have, uh, really gotten banged. It’s worse at the lower income, uh, uh, end of, of, of the spectrum. Uh, it’s the lower income, uh, quartiles that are experiencing the, uh, strongest growth, uh, in, you know, along the lines of 7% plus wage gains.
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And unfortunately, this is coming at a time when, um, uh, central banks are pulling back on their purchases of, of sovereign debt. And so a lot of the onus is going to fall on private investors, and this may result in additional yield increases in, in order to attract sufficient, um, uh, uh, interest in, in the bonds that governments are are issuing. I’m gonna skip forward and start showing some, some other charts here. Uh, economic growth, as I said, um, starting to flatten out here.
Other countries, um, particularly in, uh, Europe, are also facing surprisingly tight, uh, labor market con con conditions. Uh, and most other countries also are seeing a, a deceleration how quickly that turns into a recession in, into, uh, some, some further dips in GDP remain to be seen. Um, ironically, um, a lot of economists in recent months have been forecasting recession. Uh, you look at surveys like from the Wall Street Journal, from the National Association of Business Economics from, um, fed Central Banks like, like Philadelphia. Um, the majority of economists have been calling for a recession. Um, it’s probably the most, um, uh, the, the most expected recession of, of, in the history of, of recessions.
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Now, the good thing is that, uh, 2022 is behind us, uh, and we can always have hope for 2023. Still think that we’re going to have volatile markets, uh, markets going up and down. Uh, but I think that this year we will see those, those movements a little bit more attenuated than what we had gotten, uh, in, in the past year. Unfortunately, services inflation will likely remain pretty sticky over the coming year, particularly owing to tight labor markets, not just in the United States, but in other countries as as well. And because of those tight labor markets, wage gains are going to continue to outstrip productivity by a very large margin, therefore, giving us inflation pressures. Your photos leave me asking, what kind of person are you?
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