Citi: World Economy in 'Death Spiral'
Global Recession Headline Story
Some analysts - including those at Citi - have turned bearish on the world economy this year, following an equity rout in January and weaker economic data out of China and the U.S.
"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." Full article here (CNBC)
Citi has not been mincing their words or holding back punches when it comes to their take on the economic landscape in 2016, vocally sounding alarm bells for the increasing risk, if not likelihood, that the slump becomes a full-on US recession and global recession this year. Two weeks ago while in Davos, Citi's Buiter then also warned that the entire world is in fact already teetering on the edge of global recession that could persist throughout 2016 and even into next year, joining the ever growing list forecasting growth recession or worse.