ALERT: Titanic Economy WARNS Top Global Bank

HSBC WARNS: The World Economy 

Faces a 'Titanic Problem'

HSBC chief economist Stephen King is already thinking about the next recession.

In a note to clients Wednesday, he warns: "The world economy is like an ocean liner without lifeboats. If another recession hits, it could be a truly titanic struggle for policymakers."

Here's King (emphasis added):

Whereas previous recoveries have enabled monetary and fiscal policymakers to replenish their ammunition, this recovery — both in the US and elsewhere — has been distinguished by a persistent munitions shortage. This is a major problem. In all recessions since the 1970s, the US Fed funds rate has fallen by a minimum of 5 percentage points. That kind of traditional stimulus is now completely ruled out. Read More

Remember When?  ... Once More...

INVESTORS' INSIGHTS  - "Today's Edge" 

Since 2008, we have been warning so-called global industry captains that their is a HUGE economic iceberg in our path .Now the HSBC Titanic "does not" think that we if  just re-arrange the deck chairs we can avoid its certain fate. For sure, the band plays on -

"Once more... " 

International Offices
May 16, 2015

MARKET ALERT: Huge Panic Sale German Bunds Spooking Investors

Bund yields rise above 0.30 percent as sell-off continues

(Reuters) - German benchmark Bund yields rose above 0.30 percent on Thursday after their biggest jump in two years the previous day, as poor market liquidity exacerbated the impact of easing deflation fears and improving economic data in the euro zone.

Data showed on Wednesday that German annual inflation accelerated faster than forecast in April, crucially remaining above zero for the second month running, while private lending in the euro zone rose for the first time in three years in March.

That was a first sign that the European Central Bank's trillion euro asset-buying programme may already be having an impact on the economy and caught most investors unawares as they were positioned for further falls in bond yields. Read More.

Previous Warnings Go UnHeeded? 

INVESTORS' INSIGHTS  - "Today's Edge" 

#1 Investing Rule - watch the the Bonds, because when the bond market crashes it will bring upon the unprecedented collapse in stock markets, real estate and other asset values ever witnessed by our species. And, it is governed by mathematical absolutes - enough said.

International Offices
May 1, 2015