Pimco, Faber Forecast New Global Recession
Global bond manager Pacific Investment Management Co. (Pimco) sees a 60% chance of global recession within three to five years.
“The global economy,” says Pimco analyst Saumil Parikh, “experiences a recession every six years or so.” The last certified global recession was four years ago.
Vancouver veteran Dr. Marc Faber went on record last year saying he believed the chance of a global recession in 2013 was “100%.”
Last week, Faber told CNBC that recent Dow highs were “not to be trusted.” Jim Rogers, another Vancouver alum, with whom we just recorded the Zero Hour scenario has also been forecasting a recession. “You should be very worried about 2013-2014” Rogers warns…
In the markets, traders are worried central banks will ease their “support.” Likewise, individual investors face a catch 22: even good economic news may be negative if it causes central banks to tighten.
“Repeated doses of fiscal and monetary stimulus,” cautions The Daily Reckoning’s Dan Amoss, ”are what make the economy even more fragile over time,” he said. “And yet, during the next slump, you can expect more shrill calls for stimulus.”
And so it goes.
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