Celente – These Wild Cards Can Crash Global Equities And Economies
Celente – These Wild Cards Can Crash Global Equities And Economies from King World News
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On the heels of the recent turmoil in global markets, Gerald Celente just warned these wild cards can crash global equities and economies.
THE WILD “BUBBLE” CARD
May 24 (King World News) – While the media continues to blame any retraction and future fears of downturns in economies and equities on the trade wars and tariffs, among the greater fears barely reported is the $250 trillion debt bubble that keeps growing that has inflated equities and expanded economies.
The International Monetary Fund has warned that high corporate debt has spread to 70 percent of the global economy and “There are growing signs that this credit cycle may be maturing and risks of an economic slowdown are rising.” Singling out the U.S. and China as the most vulnerable, they warned that companies continue to borrow more even as profitability falls…
Further debt-bubble warnings were issued by Bain Capital, whose co- managing partner, Johathan Lavine noted that “increasingly aggressive” private equity groups were taking on heavy debt to win merger and acquisition deals, heightening the risk of a crash in the sector in the event of a sharp market downturn.
Therefore, should interest rates rise, so will the debt burden. Thus, the prospects for higher rates remain negligible.
WHAT A DIFFERENCE A QUARTER MAKES
On 19 September 2018, the day before the S&P hit a record high, we had forecast an “Economic 9/11” would sink stock markets. We based our forecast on stated Federal Reserve policy to aggressively raise interest rates through 2019.
Perfectly on-trend, equity markets across the globe tanked, many sinking over 20 percent into bear territory following our forecast. In fact, the Dow had its worse December since the Great Depression.