Good discussion here on economic reality. One caveat: when asset managers speak of moving capital from Europe and China to US stocks and ‘more conservative’ sectors as defensive in bear markets, they mean they hope and expect that US equities will drop less than other developing market securities, ie., maybe -50% rather than -70%. Individuals must decide for themselves whether they consider that type of ‘out-performance’ worthwhile.
The Western economic system is deeply flawed with countries such as the U.S. and Britain contributing to the lowest quality economic recovery the world has ever seen, Chris Watling, chief executive of Longview Economics, told CNBC on Friday.
“The economic model is deeply flawed and the system in the west is deeply flawed, particularly in the English speaking part of the world and it needs to change,” Watling said.
“I think this is undoubtedly the lowest quality economic recovery we have seen globally… full stop,” he added. Here is a direct video link.
Build-up of debt from loose monetary policy conditions: Longview from CNBC.
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