With another big drop in the stock market today, now Citigroup is predicting that the world economy is in a death spiral. Worse than what we saw in 2008. With ‘progressive’ leadership in this country and especially in Europe, the economy is going to hell in a hand basket. And who is really surprised? The January 2015 where way down, yet someone the unemployment rate fell giving the media a pass to brag about that. With all the fixing of the numbers and artificially inflating the stock market, thinks are finally catching up. Oh, and did I mention Obama also wants to put a $10 tax on oil purchases? Yea, more great news for the economy.
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Some analysts — including those at Citi — have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S.
“The world appears to be trapped in a circular reference death spiral,” Citi strategists led by Jonathan Stubbs said in a report on Thursday.
“Stronger U.S. dollar, weaker oil/commodity prices, weaker world trade/petrodollar liquidity, weaker EM (and global growth)… and repeat. Ad infinitum, this would lead to Oilmageddon, a ‘significant and synchronized’ global recession and a proper modern-day equity bear market.”
Stubbs said that macro strategists at Citi forecast that the dollar would weaken in 2016 and that oil prices were likely bottoming, potentially providing some light at the end of the tunnel.