Mainstream Sentiment Turns Bearish
Citi’s chief economist – Willem Buiter – just wrote:
A global recession starting in 2016, led by China is now our Global Economics team’s main scenario. Uncertainty remains, but the likelihood of a timely and effective policy response seems to be diminishing.
Mainstream sentiment is turning so bullish so fast that the top headline at Business Insider today is title “A new global recession has begun“.
And see this.
Why are we heading into another crash? Why didn’t all of the governments’ and central banks’ efforts since 2008 stabilize the economy?
As we’ve noted for 8 years:
Government leaders are doing all of the wrong things for the economy, and that the economy cannot fundamentally stabilize – and we cannot regain prosperity – unless:
- The giant but insolvent banks are broken up
- Government policies stop making the rich richer and everyone else poorer
- Government stops encouraging insane levels of leverage
- Governments stop trying to prop up unsustainable levels of debt to protect bondholders, and start forcing a debt “jubilee”