Risks of a Recession Are Overblown Says Manulife's Greene

The video discusses various economic risks, focusing on the potential for a US recession in 2019. It argues that market fears are exaggerated, as US macroeconomic fundamentals remain strong. However, risks such as a flat yield curve, potential trade war escalation, and non-financial corporate debt are highlighted. The Federal Reserve's role in past recessions is noted, with a cautionary view on its future actions. The video concludes that while a recession may occur, it is unlikely to be as severe as the last one.

What is the main argument about the US economy's risk of recession in 2019?

• The risk is moderate with some signs of economic slowdown.

• The risk is high due to overheating inflation.

• The risk is exaggerated due to strong economic fundamentals.

• The risk is low because of a booming housing market.

What does a flat yield curve indicate about the economy?

• It suggests an imminent recession.

• It indicates a stable economic growth.

• It may signal a future recession but not immediately.

• It shows a booming economy.

How has the Federal Reserve's approach changed in response to past rate hiking cycles?

• They have stopped monitoring the yield curve.

• They have adopted a more cautious or dovish tone.

• They have increased the frequency of rate hikes.

• They have become more aggressive in raising rates.

What impact could a re-escalation of the trade war have on the US and Chinese economies?

• It could dampen economic growth in both countries.

• It could lead to a significant increase in inflation.

• It could have no impact on either economy.

• It could boost economic growth in both countries.

What is identified as a potential systemic source of a future recession?

• Rising housing prices

• Government budget surplus

• Non-financial corporate debt

• Increased consumer spending