The massive volatility and sharp equity-price correction now hitting global financial markets signal that most advanced economies are on the brink of a double-dip recession. A financial and economic crisis caused by too much private-sector debt and leverage led to a massive re-leveraging of the public sector in order to prevent Great Depression 2.0. But the subsequent recovery has been anemic and sub-par in most advanced economies given painful deleveraging. Now a combination of high oil and commodity prices, turmoil in the Middle East, Japan’s earthquake and tsunami, eurozone debt crises, and America’s fiscal problems (and now its rating downgrade) have led to a massive increase in risk aversion.
Is Capitalism Doomed?
Most Popular Articles
Latest Articles
Biden unveils housing proposal that includes nationwide cap on rent increases
President Biden unveiled a plan to cap rent hikes at 5% for two years for landlords who manage 50 or more rental units.
-
Bank of America mortgage origination volume jumps 66% in Q2
-
Cooling inflation, narrowing spreads are pushing mortgage rates lower
-
Staten Island Board of Realtors enters strategic partnership with VestaPlus
-
United Real Estate settles the commission lawsuits
-
NAR partners with RentRedi for benefits program