Why the global growth model is broken
For some years now, we’ve been very wary of the legitimacy of the “economic recovery”.
For some years now, we’ve been very wary of the legitimacy of the “economic recovery”.
The global slowdown has been much discussed lately. A slowdown in Europe and China was considered to be the main reason for the December stock market rout combined with the balance sheet normalization (QT) program of the Federal Reserve. What is behi…
The stock market has been rallying lately. It has been supported by the People’s Bank of China (PBoC), which started its liquidity operations in mid-December, and the Federal Reserve (Fed), which changed to a much more ‘dovish’ tone in January. But, …
The highly obvious, probable threats that nobody should say they never saw coming –yet are not always getting the attention that will resolve them.
– Michele Wucker, March 15, 2018
When our suspicions about the current global expansion a…
2019 has started more calmly after a very volatile year-end in the markets. Focus has been on the trade deal between China and the US and the words of the central bankers, most notably those of Jay Powell. However, this is all just a distraction, a s…
The world economy has never faced a more perilous situation. While many have just started to debate whether a recession will start in 2019 or 2020, very few perceive the ‘black hole’ the global economy is about to get sucked into.
The hole has two…
Whatever has the nature of arising, has the nature of… Read More »The end of the most manipulated business cycle — ever
Errata in the effects of QE corrected 10/21. Market liquidity… Read More »The (ominous) problem with global liquidity
The Eurozone is a fragile financial mammoth. While its GDP lacks the US by around $3 trillion, assets of the banking sector are some 240 percent of GDP vs. around 90 percent in the US. It has been kept standing only through the large-scale asset purc…
The general storyline of the Global Financial Crisis (GFC) goes about like this: funds from all over the world headed to the US, where the banks, to finance the housing market boom, developed unsound financial products which then brought down the glo…