Since 1956, equities have peaked six times after the start of an inversion, and the economy has fallen into recession within seven to 24 months - can it be different this time - why not, since the last couple of years, there has always been a first of something that one would never thought would occur. I would imagine that a competent Fed would throw the kitchen sink to ensure that a recession can and will be averted - because they know (you bet they know) the stakes are very high (high corporate debts, all those nasty bits fleshed out by the video I posted etc) - but all it takes is an incompetent Fed or one poor move [ or are central bankers losing their power and their relevance? ] and the world could well end in a deep recession or even depression as the Fed mistakenly did during the 1920s Great Depression. This is the precipice I was referring to. Can the present administration and Fed manage a financial crisis even as close as what Hank Paulsen and Obama did back in 2008? I wont hold my breath, they were the ones creating the present predicament so what confidence can we have they can solve the very problems they created.
