If The Credit Markets Freeze, The Economic Decline Will Be Spectacular:Wolf Richter
Wolf Richter is a world traveler, he hold degrees in Credentials BA, MBA and MA. He is the creator and owner of wolfstreet.com
Wolf Richter is a world traveler, he hold degrees in Credentials BA, MBA and MA. He is the creator and owner of wolfstreet.com
The whole world is high on credit - once again. If markets were to freeze again, a new financial crisis would surely follow. Especially here in Europe where the Euro crisis is mostly forgotten now - but actually things have gotten even worse in the last years.
Here in the UK stocks rose two days ago on news that xmas retail spending fell 1.5%! It shows how out of touch the stock market bubble is due to the ridiculous belief that stocks will keep going up, Then again, they have been encouraged in this belief by the hundreds of billions given out by the Bof E QE programme and ultra low interest rates for a decade.
In the Uk the economy is so weak the B of E is loath to raise rates anymore than the pathetic increase of 25 bps last year.
Meanwhile, people are using credit cards and other forms of credit to pay rent/morgages and other bills. When the stock market crashes again this easy credit will dry up and cause havoc in the economy and wider society. An interesting and informative interview.
great interview @x22report . I have also been following Mr Richter for a few years now. He remains calm even when things heat up and he is very detailed in his responses/presentations.