13/10/18

Market Crash? Another 'Red Card' For The Economy



----
Market Crash? Another 'Red Card' For The Economy
// RSS

Authored by Daniel Lacalle via DLacalle.com,

A few months ago I wrote this article at the World Economic Forum called "A Yellow Card For The Global Economy". It tried to serve as a warning on the rising imbalances of the emerging and leading economies. Unfortunately, since then, those imbalances have continued to rise and market complacency reached new highs.

This week, financial markets have been dyed red and the stock market reaction adds to concerns about a possible impending recession.

The first thing we must understand is that we are not facing a panic created by a black swan, that is, an unexpected event, but by three factors that few could deny were evident:

  1. Excessive valuations after $20 trillion of monetary expansion inflated most ....

Posta un commento