Business

Wall Street experts have said that a big recession, far worse than the 2008 financial crisis, is due to hit this year.  With the S&P 500 beginning 2016 with its worst performance ever, experts say 2016 holds chaos in currency, bond and equity markets on a global scale. Cnbc.com reports: This has prompted Wall Street apologists to come out in full force and try to explain why the chaos in global currencies and equities will not be a repeat of 2008. Nor do they want investors to believe this environment is commensurate with the dot-com bubble bursting.

Submitted by Raul Ilargi Meijer via The Automatic Earth blog,

The first thing that popped into our minds on Tuesday when WTI oil briefly broached $30 for its first $20 handle in many years, was that this should be triggering a Gawdawful amount of bets, $30 being such an obvious number. Which in turn would of necessity lead to a -brief- rise in prices.

With the feds probing Deutsche Bank's exaggerating Auto ABS demand, car dealerships suing automakers for being forced to channel-stuff, direct evidence of massive channel-stuffing with near-record inventories-to-sales, and sales now beginning to tumble after last month's weak credit growth, it is perhaps no wonder that Fitch has raised the warning flag about automotive vehicle and parts makers...

As we demonstrated last week, the cracks are already starting to show.

Sales slowing dramatically...

As we noted earlier, the Atlanta Fed waited until the market close to reveal its most dire GDP estimate yet: a paltry 0.6%, matching the 0.6% recorded during the "harsh winter" first quarter: one could be forgiven to think that during today's already chaotic selloff, the last thing traders and algos needed was news that US economic growth had ground to a virtual halt.

Submitted by Lance Roberts via RealInvestmentAdvice.com,

Last week, I started the weekly reading list by stating:

“This week has certainly been interesting with the Dow Jones Industrial Average having the worst start to a year…well…ever.”

This week was not much difference as the markets continued their slide into the “worst-start-of-the-year-everer.”