Welcome to Monday: “Morgan Stanley’s Doom Scenario: Major Recession in 2013”

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From CNBC.com:

The global economy is likely to be stuck in the “twilight zone” of sluggish growth in 2013, Morgan Stanley has warned, but if policymakers fail to act, it could get a lot worse.

The bank’s economics team forecasts a full-blown recession next year, under a pessimistic scenario, with global gross domestic product (GDP) likely to plunge 2 percent.

“More than ever, the economic outlook hinges upon the actions taken or not taken by governments and central banks,” Morgan Stanley said in a report.

Ladies and gentlemen, you can’t keep printing money.

You can keep businesses in the dark with little or no way to ensure at least a few years of societal and fiscal consistency and security.  Everyone, from private citizen to small mom-and-pop business to major national powerhouse needs to be able to plan for the future.  To have some certainty about the future.

Bush started things with TARP.  But Obama took the ball and geometrically expanded it into QEs 1 – 3.  Ben Mountfield writes here that the “quantitative easing” thrusts — i.e., printing more money — are no panacea.

Ladies and gentlemen, if you think it’s not coming — bad things — just go on back to watching The Voice and Honey Boo Boo.

BZ

 

 

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5 thoughts on “Welcome to Monday: “Morgan Stanley’s Doom Scenario: Major Recession in 2013””

  3. Plan for the worst and hope for the best—but do NOT hold your breath! Bozo and his gang of clowns think they got a “mandate”, which I submit they did NOT get, and will keep acting as bad or worse than they did during bozo term #1. Invest in gold, silver, and lead!

    • Roughly 51 – 49 does NOT a mandate make. Plain and simple.

      But yes, prepared to play Smash Mouth Politics.

      Whilst watching the country disintegrate.

      BZ

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