From corporations to the middle classes (lower-, middle-, and upper-middle classes): a looming liquidity crisis.
New theme added for 2022: the liquidity crisis.
Maybe one can trace it back to the Fed, but the tipping point for the Great Recession of 2022 will be "the liquidity crisis."
Exhibit A: wind energy plants in Kansas and Iowa are shutting down. I can't imagine a better time for renewable energy: high energy prices; strong back from Washington (DC); and, yet, this story:
HUTCHINSON, Kan. (AP) — Siemens Gamesa wind-energy plants in Hutchinson, Kansas, and Fort Madison, Iowa, will close down while the company waits for new orders.
Officials with the company announced Friday that most employees at the two plants will be laid off.
The blade manufacturing plant in Iowa will close in June, followed by the Kansas plant in July.
Siemens said 171 people work at the Iowa plant, with 92 in Kansas. The company said it is possible the plants could reopen if market conditions improve.
The Iowa plant manufactures wind turbine blades. The Kansas plant manufactures nacelles, which house the turbine’s generating components.
This will trickle down to high middle-income folks who were banking on their huge stock market gains to finance their expensive air fair and car rental vacations to the national parks in Colorado, Wyoming, and Montana. The upper middle class (maybe) and the upper class will do find but the middle middle class and below will struggle in the Great Recession of 2022.
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