Bank Of America Forecasts No Recession Until 2027 (If Ever), Sees S&P At 3,500 In 10 Years

All I know is that the B of A economist was seen driving around in this before he wrote the report.

Mark this post. No recession until 2027. Whoopee! Take that to the bank! Bank of America that is! Happy days are here again. Good thing the always reliable economists can see 12 years into the future. I, seriously, feel so much better about things. Just wonderful.


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Billionaire Paul Singer on Chinese downturn, could cause “Global central bank panic.”

Are we too pessimistic with regard to China? Perhaps, but who really knows. Seriously, who really knows. The data out of the Ultimate Crony Capitalist State is poor. It is politically manipulated. No one really has a hard sense of what’s actually going on, including probably the Chinese government to a large extent.

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China likely to drag the world into global recession, Citigroup says

Actually not totally true.

China is, as we say, The Ultimate Crony Capitalist State. Business and government are an amalgam. Long a crony paradise where a premium was placed on compliance and government favor and not on real pricing.

It looks like reality is finally starting to hit however.

About 6 months ago I was talking to a China energy markets analyst and he explained the complexities of implementing a carbon tax regime in the country to me.

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So the market went up 441 points today, then dropped like a rock in the last hour of trading, finishing 204 points down

Image: Marketwatch

At the start of the day everyone had “plunge protection team” in the back of their minds. (Even if they wouldn’t say it.) It looked as if the short term fix was in. But it turned out to be more short term than many expected. When the dust cleared we were down, again, for the 6th day in a row.

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China, world economy spooking the Fed? No hike in September?

At this point any rate hike looks like a big giant excuse for people to sell off stocks. People want to sell, really sell, one can feel it, but people don’t want to fight the Fed. However, if Yellen shoots a flare into the sky people will move on it. People just want a reason. Which is why Yellen probably won’t move rates.

It would be a pretty bold move for Yellen to hike in the midst of what looks like a possible looming recession in much of the world (Brazil,

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Forget Recession: According To Caterpillar There Is A Full-Blown Global Depression

Caterpillar sales have been declining for over 2 years. Latin American sales have fallen off a cliff. Caterpillar makes heavy industry construction equipment. Draw your own conclusions.

It is interesting to note that the decline is not as sharp as during the “Great Recession,” it’s more stretched out and has been shallower. However it has been steady and steady declines are the thing of maturing depressions.

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The Ultimate Crony Capitalist State struggles with reality, “The beginning of a much larger turndown with China” (VIDEO)

It should be noted that when aspirational countries hit economic brick walls they often do not react well. Suddenly power shifts, as do markets and political perspective – in policy circles and in the general population. This creates instability, which threatens the powers that be. The powers that be then react.

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Is a global economic recession coming? Copper prices (and other developments) point to ‘yes’

Funny, for many people it still feels like we are in a recession, now we’re looking at another one?

China buys more copper than anyone to make the things China makes. If China’s manufacturing slows so to do inflows of copper.

It’s hard to get good information out of the Crony’s Republic of China. But we do know when they stop buying copper, and what that generally means.

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See, everything is great. Unemployment at 5.6%. No worries.

We are starting to approach what many economists call “full employment.” The point at which the people who are unemployed really are “just between jobs.” There is little long term unemployment. Jobs are plentiful. There is upward pressure on wages. In short, general prosperity.

Can’t you feel it?

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No Happy Ending for Investors in Central Bank Fairy Tale

Markets can’t levitate forever.

Ah yes, all the hokus pokus is less magic and more smoke and mirrors. Some of us have said this for a long time. But in the wake of Japan falling back into recession, Europe’s continued depression, China’s slowing, and the ongoing troubles in the United States one gets the sense that on some level the grand poobahs of central banking are just tired. The act can only go on for so long. Sooner or later it has to end.

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