The Kids Are NOT Alright πŸ“š 🍎

You’ve probably heard of TikTok challenges. But have you heard about the havoc they’re wreaking in U.S. schools?

Over the last year, challenges like devious licks (students steal and vandalize property) have spread like wildfire throughout schools in the U.S. But now, challenges like β€˜slap a teacher’ have teachers at their breaking points.Β 

Bathrooms in schools throughout the country are flooded, vandalized, and wrecked. And teachers are finally speaking up β€” the President of the National Education Association, Becky Pringle, sent a letter to the CEOs of TikTok, Facebook, and Twitter in an effort to address the chaos. Pringle wrote:

β€œ…online β€˜trends’ and false information have spread like wildfire throughout social media platforms. From stealing school property and hitting school staff, to conspiracy theories on curriculum and coronavirus protocols – have helped create a culture of fear and violence with educators as targets.”

TikTok announced its intention to remove hashtags related to destructive behavior as the platform is in agreement with educators: β€œThe rumored β€˜slap a teacher’ dare is an insult to educators everywhere.”

After a year of lockdowns, both students and teachers alike are adjusting to being back in the classroom. And it’s apparently not going very well. 😬

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As we’ve discussed, much of the market’s recent rally has come on the back of hopes that the Federal Reserve will cut rates as much as six times in 2024. Disinflation continues across most major metrics, but a tight labor market has kept consumers spending and the economy humming along. As a result, Jerome Powell and the Fed have been hesitant to loosen financial conditions too quickly.

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And August’s consumer price index (CPI) data did little to move the needle. 😴

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Yield Curve Inversion Deepens

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As discussed in our posts, a yield curve inversion is not a perfect indicator of a recession, but it has a pretty good track record. That’s because when short-term rates are above long-term rates, investors believe growth (i.e., inflation) will be higher in the short term than the longer term. As such, they demand a higher yield to hold short-term bonds than long-term ones.

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