Business

After The Cleveland Fed's warning of "significant stress" in the financial markets, we find none other than Dovish-hawk Jim Bullard's St.Louis Fed growing increasingly fearful of the "r" word.

The last two times, financial stress was this "significant," The Fed unleashed QE1 and Operation Twist...

And now, as Mises Institute's Mark Thornton notes, this little known chart (below) is the St. Louis Fed's attempt to anticipate a recession in the US economy.

By EconMatters

Via Dana Lyons Tumblr,

The broad NYSE Composite stock market index is testing the level we deemed “must hold” – that broke in January.

Authored by GlobalGold's Claudio Grass, via Acting-Man.com,

With a Gloomy Start to 2016, a Bust Seems just Around the Corner

Markets have corrected substantially since the beginning of the year as most of the gains of the past two years have been erased. According to Bloomberg, 40 out of the largest 63 markets have dropped over 20%. The image below shows the performance of markets word-wide since their most recent peaks. Most markets are in a bear market phase or are at best experiencing a strong correction. The world is red!

Authored by John Coumarianos, originally posted at MarketWatch.com,

One view of what caused the Great Depression in the 1930s is that the Federal Reserve failed to prevent a collapse in the money supply.

This is the famous thesis of Milton Friedman’s and Anna Schwartz’s A Monetary History of the United States, 1867-1960, and it was, more or less, the view of Ben Bernanke when he was chairman of the Federal Reserve.

The global economy today resembles that of the 1930s in several ominous ways.