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Fourth echelon

Is A Global Recession Coming? Bond Market Decline Has Investors Spooked

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There are signs of a decline in the bond market, and that spells bad news for the wider economy. The markets are a good predictor of the state of the overall economy, historically around six months ahead of what's to come. The decline, coupled with low oil prices, has analysts worried, but that doesn't necessarily mean it's all doom and gloom.

Fears are growing the decline in junk bonds could be a sign the economy is the worse for wear. A rise in the default rate is expected to reach 4.6 percent next year, higher than the 30-year average and the first time that average has been exceeded since 2009.

“In most high-default periods we’ve seen in the past, the rise in default rates precedes a recession,” Edward Altman, finance professor at New York University, told the Wall Street Journal.


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 YourMom2    1,282

The market has been dropping for 5 straight days. Where are all the MSM front page articles comparing this to 2008?

We've already been living in the recession.....next up....depression.

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