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February 24, 2018 | 108 Months of Global Easing Ends: Tightening vs Recessions

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

108 months of global easing by the Fed, ECB, and Bank of England comes to a halt.

Global tightening is on the way. What can possibly go wrong?

I took an excellent chart from a Liz Ann Sonders Tweet and added recession dates.

Note that in 2001 it did not take much tightening before a recession started. Then like now, the Fed was positive everything was under control.

Bear in mind, tightening will not cause a recession. Central bank policies for the last eight years will cause the next recession. It should be a doozie for corporate profits and pension plans.

Mike “Mish” Shedlock

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February 24th, 2018

Posted In: Mish Talk

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