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The next recession could be triggered by this new abrasion and may happen sooner than we think. Crash of a titan: Since 1975, however, an average of 13 countries have found themselves in the throes of one each year. Moreover, the leverage in many emerging markets and some advanced economies is clearly excessive. In the case of a risk-off, emerging markets and advanced-economy financial sectors with massive dollar-denominated liabilities will no longer have access to the Fed as a lender of last resort.
And when financial fear stalks the land, RV-makers have a particularly hard time.
Canary in the coal mine Housing is one place investors have been watching, for fear it is signaling a consumer slowdown. True, America only recently passed a budget-busting tax reform, which promises to swell its deficit and thus to boost American spending.
Could the next recession happen sooner than we think? New to The Economist? CNBC Newsletters.
Here are two safe forecasts, the kind you can count on. Mark Steel. How Investors and Markets Behave. There's a lot of risks we don't fully understand in the system.
Inflation is low, and—relatively speaking—so are rates. Household wealth has doubled in the last nine years, fueled by the quadrupling of stock prices and the full recovery of home values since the depths of the financial crisis. Business orders on equipment stalled out. The companies that dominate this world are all American — with some Chinese imitators.
Economists point to a number of factors for the slower growth, but topping the list of scare factors for markets are those Fed interest rate hikes as well as the impact of tariffs and trade wars, should they continue. You can also choose to be emailed when someone replies to your comment. A s we mark the 10th anniversary of the collapse of Lehman Brothers, there are still ongoing debates about the causes and consequences of the financial crisis, and whether the lessons needed to prepare for the next one have been absorbed.
Loading comments… Trouble loading? Apart from a small, shop-lined high street near where one river, the Elkhart, flows into another, the St Joseph, the city is mostly shapeless, tree-lined and suburban. At the same time, credit spreads have widened in both the high yield and investment grade corporate to 2016 levels.
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