Negative interest rate policy and Intensifying recession fears, volatile financial markets and moves toward negative rates

Negative Rates in US? Here’s Why It Could Happen

Less than two months after the Fed enacted its first rate hike in more than nine years, market talk already has turned to whether the central bank’s future may not be more hikes, but rather negative rates. Intensifying recession fears, volatile financial markets and moves toward negative rates by other central banks have triggered speculation…

American flag and falling arrow indicating chances of recession on Wall Street are growing for 2016

Why 2016 Keeps getting Uglier for US Economy

When it comes to economic growth, 2016 is looking a lot like 2015 — and probably even worse. Friday’s report showing that gross domestic product grew just 0.7 percent in the fourth quarter brought to a conclusion another year of dashed hopes for economic liftoff — “escape velocity,” as it is sometimes called. Seven years…

Torn pieces of newspaper with words like uncertainty, health care, oil, economic turmoil, and panic

Mohamed El-Erian Warns about a Day of Reckoning

Allianz Chief Economic Adviser Mohamed El-Erian said Tuesday the world economy is at the end of the era of borrowing growth and profits from the future in the form of easy monetary policies. “Either we validate the financial asset prices and growth faster, or alternatively we will slip into a global recession with financial disorder,”…

Red and blue stock market line chart as stocks crash

Gartman: Why Any Stock Bounce will be Short-Lived

Any bounce in U.S. stocks will be short-lived, widely followed market watcher Dennis Gartman cautioned on Tuesday. The warning came as U.S. stocks were poised to open higher following data that showed China’s economy grew by 6.8 percent, easing fears of a more significant slowdown. What has the publisher of The Gartman Letter concerned is…

One hundred dollar bills neatly lined up with a torn piece of paper reading "stock market crash?"

A Recession Worse than 2008 is Coming

The S&P 500 has begun 2016 with its worst performance ever. This has prompted Wall Street apologists to come out in full force and try to explain why the chaos in global currencies and equities will not be a repeat of 2008. Nor do they want investors to believe this environment is commensurate with the…

Snippet of newspaper article about financial crisis of 2008 with a focus on the word "disbelief"

Soros: It’s the 2008 Crisis All Over Again

Billionaire financier George Soros is warning of an impending financial markets crisis as investors around the world were roiled by turmoil in China trade for the second time this week. Speaking at an economic forum in Sri Lanka’s capital, Colombo, he told an audience that China is struggling to find a new growth model and…

Jagged, falling arrow against backdrop of electronic stock prices

Black Swan Risk Rises to Highest Level Ever

Investors fear a “black swan” catastrophic event in the financial markets right now more than ever before. At least according to the CBOE Skew Index, which measures the prices of far out-of-the-money options on the S&P 500. Its goal is to determine the benchmark’s tail risk or the “risk of outlier returns two or more…