World economy in 'death spiral' according to Citi analyst ... expects rational behavior to prevail

[NightHawkeye]

Citi: World economy seems trapped in ‘death spiral’ | CNBC

"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."

Stubbs said that macro strategists at Citi forecast that the dollar would weaken in 2016 and that oil prices were likely bottoming, potentially providing some light at the end of the tunnel.

"The death spiral is in nobody's interest. Rational behavior, most likely, will prevail," he said in the report.​

 

[redleghunter]

Citi: World economy seems trapped in ‘death spiral’ | CNBC

"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."

Stubbs said that macro strategists at Citi forecast that the dollar would weaken in 2016 and that oil prices were likely bottoming, potentially providing some light at the end of the tunnel.

"The death spiral is in nobody's interest. Rational behavior, most likely, will prevail," he said in the report.​

Can't be true. We have been told by President Obama that we are in the best recovery since the Great Depression.

 

[Uncle Siggy]

Can't be true. We have been told by President Obama that we are in the best recovery since the Great Depression.

2% per year is the best recovery since the Great Depression??

Oh wait it seems I read an article about 3 years ago that claimed the Obama Administration had changed the way economy growth was figured (just like the unemployment figures) so it would appear to be growing 2-3% when in reality it was stagnant or shrinking. Hmmmmm...

 

[wing2000]

....so when the US economic figures don't cooperate with your negative spin, turn to the global numbers eh? It wasn't long ago you were whining about high gas prices.

 

[The Barbarian]

Can't be true. We have been told by President Obama that we are in the best recovery since the Great Depression.

Hmm... (Barbarian checks)

No, he (correctly) said it was the longest sustained recovery since the Great Depression.

"Best" depends on who you're talking to.