Wesfarmers warns of Morricession

Monday, 17 January 2022

WES with the warning today:

OMICRON cases will peak soon but they will also remain elevated for months given the private sector lockdown and second stage surge as schooling resumes. So expect a slew of similar warnings.

I remain of the view that Q1 will return us to the “Morricession“, the phenomenon in which a contraction in GDP is triggered exclusively by an idiot gyrating the macroeconomic levers:

About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.