"In addition, the homebuilders’ equity index is on the turn of a full-blown bear market. Even more surprising when stimulus is at full force. The US has never run a late-cycle deficit of this scale in peacetime."
This raises concerns about fiscal drag, which happens when debt repayments exceed the revenue generated from the extra stimulus pumped into the economy, leaving the government’s finances worse off.
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david.thorpe@ft.com
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