In this clip from today’s edition of The Macro Show, Hedgeye CEO Keith McCullough breaks down the Fiscal Gap, and why a massive Federal Spending comp will lead to an economic slowdown in the second quarter of 2022.
“There’s so many components to #Quad4 that macro tourists won’t think about while they’re thinking about Putin and his puppy this morning.
$1.3 Trillion in a Federal Spending hole. The bulk of the decline is going to come in the second quarter of 2022, where it’s an 8% Y/Y step-down. If you start to think about the people that were stimulated, and you comp the stimulation, you get slowing, faster.
The free money’s gone, the crap that consumers bought has gone down, and their favorite stocks are going down.”
