You Really Should Start Panicking Now

stock broker chart down market arrow loss fail bear crash panic stocks trader

Suppose that in June 2007 you had been told that the UK 10-year bond would be yielding 1.54 per cent, the US Treasury 10-year 1.47 per cent and the German 10-year 1.17 per cent on June 1 2012.

Suppose, too, you had been told that official short rates varied from zero in the US and Japan to 1 per cent in the eurozone. What would you think? You would think the world economy was in a depression. You would have been wrong if you had meant something like the 1930s.

But you would have been right about the forces at work: the west is in a contained depression; worse, forces for another downswing are building, above all in theĀ eurozone. Meanwhile, policy makers are making huge errors.

Read the rest at Financial Times >

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