2008 all over again?
The global economy has been facing a Sisyphean uphill battle since the devastating financial collapse of 2008. In the wake of such a catastrophic global financial breakdown, with aftershocks and effects lasting long years, it is not surprising that economists and investors are jumpy at any chance of repeat. Recovery has been exceptionally slow… so slow in fact that we cannot be sure whether the current condition is in fact a new collapse or the continued effects of 2008.
2015 saw some window of relief with NFP report numbers in the US steadily rising, and the apparent stabilization of the world's largest economy as evident by the FED raising the interest rate. However, 2016 has been putting any optimists to rest.
The big debate is this… are we in fact in crisis?
It would seem that this is a simple question but try asking 5 different experts and see what happens. The safest answer at the moment seems to be that we are on the verge of a crisis. True, there are economic indicators that spell global calamity, not least among them being China's continuing decline, however, when we look at things a bit closer the picture changes. Each individual economy, is not in fact in crisis. It is the synergy of all these economies and their domino-esque effects on each other that offers the threat.
Whether warranted yet or not, investors appear to be fleeing to safe haven investments. The overall global economic climate at the moment is one of nervousness and fear. If 2016 does not start showing some signs of a road to recovery, we could all be facing a very grim outlook.