Howard Marks: This ‘Recession’ Won’t Last Long

In this interview with Yicai Global, Howard Marks explains why this recession won’t last long. Here’s an excerpt from the interview:

Marks: Within the bounds of my limitations on forecasts Ivan I would say probably yes.

As I just finished saying the Fed is trying to weaken the economy to reduce inflation to a tolerable level without making it so weak that it falls into recession. And historically speaking this has been very difficult.

It hasn’t worked most times but again I want to caution you and your audience. The important thing is not yes/no in answer to your question, yes recession, no recession, the important question is if there’s a recession, how bad, how long, and my naïve view tells me that it will not be too strong a recession and will not last too long because… especially because the dynamics of labor demand are so strong.