- US economic collapse ‘a given’
A year after the financial crisis, US stock markets have recovered in the belief that the American economy is on the mend and the worst of the crisis is over.
- ‘Enjoy the Asian asset bubble while it lasts’
Monetary policy in the West will remain easy in response to anaemic economic growth, but the prime beneficiary of this will be investors in Asia.
- Paul Krugman: End of World ‘Postponed’
The global economic downturn has probably hit bottom though the recovery will be “slow and painful,” said Paul Krugman, the Nobel Prize winning economist. “The end of the world appears to have been postponed,” Krugman, a professor at Princeton University, said at a seminar in Helsinki today. The world economy “does not appear to be falling into an abyss but is still” in trouble. The outlook is “very fuzzy’ and a W-shaped recovery may become U-shaped, he said.
- Why crude oil prices will keep going up
After the epic crash last year, the price of oil is stabilising and it should rise exponentially over the following years. Over the past year, global consumption has stayed weak. However, once the economy recovers, crude oil should resume its secular bull market.
- From Bear to Bull
James Grant argues the latest gloomy forecasts ignore an important lesson of history: The deeper the slump, the zippier the recovery.