BIS warns global economy risks crisis ‘relapse’

© AFP/File | BIS chief economist said central banks around the world had been administering “powerful medicine” to counter the effects of the 2008 crisis, with “unusually and persistently low interest rates,” which came with some “inevitable” side effects

 

ZURICH (AFP) – The Bank of International Settlements said Sunday the global economy risked a “relapse” of the crisis that rocked it a decade ago, warning there was little “medicine” left to treat the patient a second time.

“Things look rather fragile,” BIS chief economist Claudio Borio told reporters in a conference call.

“There is little left in the medicine chest to nurse the patient back to health or care for him in case of a relapse,” he warned.

Cracks in Dollar Are Getting Larger

 

Many Daily Reckoning readers are familiar with the original petrodollar deal the U.S made with Saudi Arabia.

It was set up by Henry Kissinger and Saudi princes in 1974 to prop up the U.S. dollar. At the time, confidence in the dollar was on shaky ground because President Nixon had ended gold convertibility of dollars in 1971.

Saudi Arabia was receiving dollars for their oil shipments, but they could no longer convert the dollars to gold at a guaranteed price directly with the U.S. Treasury. The Saudis were secretly dumping dollars and buying gold on the London market. This was putting pressure on the bullion banks receiving the dollar.

Former BIS Chief Economist Warns “More Dangers Now Than In 2007”

Bloomberg

 

Having warned in the past that “the system is dangerously unacnhored,” former chief economist of the Bank for International Settlements, William White, told Bloomberg TV overnight that the current situation “looks very similar to 2008,” adding that OECD sees “more dangers” today than in 2007.

Financial Crash Warning: Markets to ‘be hit’ by triple collapse ‘worse’ than 2008 crisis

The next crash could be even bigger than 2008, according to Mike Maloney [GETTY]

 

THE next financial crisis will be worse than the collapse seen in 2008, and investors should seek shelter from the storm in precious metals and crypto currencies, according to an analyst who has predicted a triple market burst.

Mike Maloney said housing, bond and stock markets are now in for a big fall, after forming an ‘everything bubble’ which will have devastating effects when it bursts.

The crash will push investors into gold, silver and the likes of bitcoin, according to the gold analyst.

Financial CRISIS: Will Deutsche Bank collapse be WORSE than Lehman Brothers in 2008?

WOULD the collapse of the German banking giant be another Lehman moment for the global banking sector? 

The dramatic collapse of Lehman Brothers eight years ago this month was a defining moment of the devastating financial crisis.

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Eight years on, Deutsche Bank’s shares fell to an all-time low today amid fears that it cannot afford to pay a huge fine from the US. 

Keeping a Promise Isn’t Always a Good Thing (depends on the promise)

 

Usually, this blog is devoted to understanding external economic warfare. Of course, there can be internal warfare as well. Just consider the oath to defend the Constitution from “all enemies, foreign and domestic.” Likewise, enemies of our free market economy are not limited to foreign threats.

We are now witnessing a nearly complete economic assault waged against what was once a significant portion of our domestic energy industry. Essentially, coal is bankrupt, with the collapse of Peabody as just announced. This is not a shock. In fact, it was a campaign promise of then Senator Obama.

This Looks Like the 2008 Stock Market Crash All Over Again

U.S. markets logged their fifth straight week of gains last week, pushing the Dow and S&P 500 into positive territory for the first time in 2016. But despite those gains, the fears of a stock market crash are still very real.

In fact, Money Morning Capital Wave Strategist Shah Gilani says this rally reminds him of the one that preceded the 2008 stock market crash…

Deutsche Bank’s Lehman Behavior Signals a Looming Stock Market Crash

Yesterday, Deutsche Bank AG‘s (NYSE: DB) co-CEO John Cryan released a surprise memo saying its balance sheet “remains absolutely rock-solid.” His assertion comes amid fears that the investment bank is unstable (an understatement) – which could be emblematic of a broader European bank fueled stock market crash.

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Releasing a forced statement to the worrying public is something Lehman Brothers did just before it collapsed in 2008. The now-defunct corporate banking giant assured investors that it had enough liquidity to weather the financial crisis in 2008.

Mass Layoffs To Return With A Vengeance

Remember the mass layoffs of 2008-2009? The US economy shed millions of jobs quickly and relentlessly, as companies died and the rest fought for survival.

Then the Fed and the US government flooded the banks and the corporate sector with bailouts and handouts. With those giga-tons of liquidity sloshing around, as well as taking on massive amounts of new cheap debt, companies were able to finance their working capital needs, hire workers back, and even buy-back their shares en mass to make themselves look deceptively profitable. The nightmare of 2008 soon became a golden era of ‘recovery’.

Well, 2016 is showing us that that era is over. And as stock prices cease to rise, and in fact fall within many industries, layoffs are beginning to make a return as companies jettison costs in attempt to reduce losses.

WORLD IN FINANCIAL MELTDOWN: Global economy set for recession WORSE than 2008

BRITAIN and the world could be about to enter a recession that will be more brutal than 2008 thanks to China’s slowing economy, experts fear.

China’s has the second largest economy in the world and represents around 12 per cent of global GDP and 18 per cent of global manufacturing exports.

At the same time, it has built up huge levels of debt within its stock market helping to create a huge bubble that now looks set to burst. 

‘Death cross’ patterns spread to all corners of the stock market

 

Russell 2000 can’t hide from the death cross epidemic

“Death cross” patterns continue to spread through the stock market like an epidemic, even infecting market segments believed to be more insulated from overseas turmoil.

The Russell 2000 index RUT, -2.71%  of small-capitalization stocks became the latest victim among the major market indexes. The index’s 50-day moving average fell to 1,222.95 in midday trade Tuesday, crossing below the 200-day moving average (MA), which slipped to 1,224.11, according to FactSet.

US is Gearing Up for Onrushing Economic Apocalypse

September and October… get used to hearing those two months.

What’s coming is imminent, but not the end of the world. Although, it will likely trigger serious civil unrest and even war.

Be prepared, be it financially or physically. The best advice, however, is to be right with the Lord.

 

America hurls all effort into preparing for September “apocalypse” as economic forecasts are becoming more and more intimidating, RT columnist Robert Bridge wrote.

According to Gallup’s recently released US Economic Confidence Index rating, confidence in the US economy among Americans dropped to its lowest level in July. Nothing to be surprised about, considering that each and every economy analyst deems it duty to share predictions on the country’s nearest future in a campfire scary story manner.

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ALBERT EDWARDS: Chinese devaluation is leading to ‘a financial market rout every bit as large as 2008’

Many experts continue saying the second half of September 2015 and the first half of October 2015 is the beginning of a major and imminent turning point for the world economy — and much graver than what was seen in 2008 or the Great Depression. For example, former Reagan advisor Martin Armstrong and his forecasting model that has never gone wrong are predicting a hit in the first week of October 2015, or 2015.75.

See also: The Shift in Public Confidence: 2015.75

Batten down the hatches.

 

Societe Generale Economist Albert Edwards might have finally out-beared himself. He says the China devaluation is a step towards “a financial market rout every bit as large as 2008.”

In his latest note, Edwards says the Chinese currency devaluation is the beginning of a period of serious foreign exchange weaknesses in Asia.

America’s Alice-in-Wonderland Economy

Debt is good, dollar is gold, and stocks only go up—things are getting curiouser and curiouser.

The phrase “mad as a hatter” refers to the 19th-century use of mercuric-nitrate in the making of felt hats. Long-term exposure to mercury caused hatmakers to experience mood swings, tremors and emotional imbalances that made them appear mad.

We live in a world gone mad. Money printing—today’s mercury—has poisoned the whole financial system.

Trusted relationships have broken down. Fundamental truths appear suspect, and economic laws no longer seem to hold true. In America especially, it’s as if the whole economic system fell down a rabbit hole into a world where up is down, debt is good, and people exuberantly celebrate unbirthday parties every day of the year but one.

How Many More “Saves” Are Left in the Central Bank Bazookas?

The master narrative of the global economy shifted six years ago from “China will push global growth for decades to come” to “the central banks can push global growth for decades to come.”

Time after time we’ve witnessed enfeebled global markets jolted out of terminal declines by central bank pronouncements and new money-printing policies. Never mind that the European Central Bank’s (ECB) Mario Draghi had no concrete proposals in hand when he announced the ECB would “do whatever it takes” to save the European Union from the financial consequences of its reckless abandonment of risk management; the mere announcement was enough to trigger a massive reversal in global markets.