The 'mother of all bubbles' could blow up the economy if profits don't improve, warns Blackstone
The mother of all bubbles could blow up the economy if profits dont improve, warns Blackstone strategist
MarketWatch
By Shawn Langlois
Published: Nov 4, 2019 6:56 a.m. ET
Joseph Zidle...At the end of any economic cycle, we often get warnings that appear to be unrelated, he writes in a note. Its in hindsight that we realize that they were not at all random. We saw this during the housing bubble, he added, and were seeing it now.
Among the recent troubles he thinks are connected are repo market woes, negative-yielding debt, global trade conflicts and collapsing manufacturing. And every cycle ends with excess.
The mother of all bubbles in the sovereign debt market, Zidle says, is the catalyst that will likely trigger the next recession. He expects that to happen between mid-2020 and the end of 2021.
https://www.marketwatch.com/story/the-mother-of-all-bubbles-could-blow-up-the-economy-if-profits-dont-improve-warns-blackstone-strategist-2019-11-04?mod=home-page