Citi: World economy trapped in ‘death spiral’

[LiberalArkie]

Source: Yahoo/ CNBC

The global economy seems trapped in a "death spiral" that could lead to further weakness in oil prices, recession and a serious equity bear market, Citi (NYSE:C) strategists have warned.

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."

Read more: http://us.finance.qa1p.global.media.yahoo.com/news/citi-world-economy-trapped-death-160555632.html

[navarth]

1. That's some scary shit

I'm glad our house is almost paid for.

[roamer65]

16. I'd get it paid off ASAP if I were you.

I remember my dad quoting what my grandfather said about the GD. Those who had most of their mortgages and loans paid off were foreclosed first. The banks could make money off the sale of their properties. Those who were deeper in debt were often renegotiated or given easier terms because the banks could not make money off the foreclosure. My grandfather was a local county official so he undoubtedly saw the paperwork.

[navarth]

20. Thanks, no worries

We've got like 3 payments left. We'll be ok as long as I have work.

[villager]

2. Hopefully, it will also, finally, lead to "post-Capitalism," so the 1%ers can't keep fucking with

...the rest of the planet like this.

[navarth]

21. Yes sir.

[6chars]

3. so it's time to move to cash?

and buy up the world at fire sale prices.

wonder if any hedge funds are thinking this. ...

[Moostache]

4. They ALL are...n/t

[Warpy]

5. That's the end game of capitalism, when money gets concentrated into as few hands as possible

and monopolies are created while the demand side of the equation has dried up because people are maxed out on debt and are being paid inadequate wages to continue anything but servicing that debt and bare subsistence.

And the 0.1% act surprised. Why, they deserve that money! They worked for it! Well, being brought up by nannies is work, isn't it?

Next comes total collapse in which all but a few fortunes are wiped out, temporary reforms are enacted, and the game begins again.

[xocet]

10. When does the pitchforks, torches and guillotines phase occur? Is it before, during or after reset?

n/t

[Warpy]

11. During. Austerity so far has been mild

After the collapse, they actually try to starve us, a bad idea since nothing makes people crazier than hunger.

[randome]

6. So it's time to perk up the world with investments in green energy!

Plenty of economic activity there to sustain us for several decades.
[hr][font color="blue"][center]TECT in the name of the Representative approves of this post.[/center][/font][hr]

[elleng]

8. Quite right, but

the one candidate who promoted this was ignored.

https://martinomalley.com/climate/agenda/

[Art_from_Ark]

22. There is another candidate who is promoting green energy

http://feelthebern.org/bernie-sanders-on-energy-policy/

[wordpix]

9. yes, yes and they will never be able to buy the sun and wind

[PersonNumber503602]

18. But they can do this

[turbinetree]

7. Place your bets folks-------------------------------

Honk--------------------for a political revolution Bernie 2016

[mahina]

12. Bright side,

That will mean lower CO2 emissions.

[wordpix]

13. I wouldn't trust one word from this bankster group

They're out to make money off YOU, period.

"Oilmaggedon," my ass. Obama is right---put a tax on each barrel of oil NOW, while it's cheap, and fund the new clean energy economy.

[Oneironaut]

14. Meh.

We've been told that the sky is falling every week by a new clickbait article. If the internet were even close to accurate, we'd all be dead by now.

[phantom power]

15. Why are "cheap fuel and commodities" supposed to be bad for economic growth?

Personally, I think fuel and other commodities *should* be expensive, to properly price in externalities. But I don't really get why it should be bad for the world economy if the fuel and commodities that businesses and consumers all use get cheaper.

[roamer65]

17. Because it is symptom of demand destruction.

The velocity of money figures are still slowing, which means demand destruction is not letting up. Lower demand equals lower economic activity.

All the QE and easy money is not stopping the deflationary spiral.

[daleo]

19. Capitalism, as we have come to know it, is failing

But failure can be slow, then all at once. Hard to say where we are right now.

[inanna]

23. +1