Emerging stock markets have been in a crisis and Europe appears to be entering one. By emerging markets, we don’t mean only basket-cases like Venezuela; China is the world’s second largest economy. India, Turkey, South Africa and a number of other markets are struggling with rising inflation and sagging stock and bond markets, also the Italian market has been rocked by surging interest rates.
Even before the recent decline, U.S. housing stocks had entered a bear market.
All around there are growing signs that the global economy is about to slow down, and for the United States it’s the housing market.
Murray Gunn, chief of global research at Elliott Wave International told the
Post
, "We think the major economies are on the cusp of turning into the worst recessions we have seen in 10 years. Should the [U.S.] economy start to shrink, and our analysis suggests that it will, the high nominal levels of debt will instantly become a very big issue."
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Experts cautioned that several economic markers had gotten much worse over the past decade, especially in regard to borrowed money. The U.S. household debt of $13.3 trillion is now far worse than it was during its 2008 peak, due primarily to mortgage lending.
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BENJAMIN FEARNOW
, “
THERE COULD BE A FINANCIAL CRASH BEFORE END OF TRUMP'S FIRST TERM, EXPERTS SAY, CITING LOOMING DEBTS
”, Newsweek, October 11, 2018, 11:37 AM CDT
