Nearly $8 trillion wiped off world stocks in January, U.S. recession chances rising

Reuters ^ | 22 January 2016 | Jamie McGeever

[Lorianne]

World stock market losses are approaching $8 trillion so far this year and investors last week poured the most money into government bond funds in a year, suggesting they fear the global economy could tip into recession, Bank of America Merrill Lynch said on Friday.

The bank's U.S. economists also said on Friday that the likelihood of the world's largest economy entering a recession in the coming year has risen to 20 percent from 15 percent.

While a repeat of the 2008-09 great recession "is a big stretch" and even the one-in-five chance of a normal recession remains low, they cut their 2016 growth forecast to 2.1 percent from 2.5 percent

[Recompennation]

Eight trillion dollars?
Why that’s just eight of those platinum trillion dollar coins that our government creates wealth with.. . Grit teeth and winch.

[Organic Panic]

Reminds me of a house I once owned. I bouight it cheap. Let’s just say $100,000. The big bubble came to town and I had offeres of $300,000. The bubble burst and I still had a $100,000 house. I did NOT lose $200,000

All vapor and printed money means nothing.

[Lorianne]

I agree. But if you had taken out a second mortgage on it (leveraged it) you would be out real money