The stock market dip in October saw an onset of hysteria regarding the state of the global economy, with many analysts asserting that another sweeping worldwide downturn is imminent. Trade tensions, a poorly timed US fiscal stimulus, slowing Chinese growth, and a messy and uncertain Eurozone have signalled to many that the perfect storm is brewing which may spur another global recession.
But as most of our economists, policymakers and journalists mull over economic indicators and look towards the horizon for an impending crisis, others argue the symptoms of another global economic catastrophe have been unequivocally fixed in the rear mirror since 2008.
September marked a decade since the bursting of the housing bubble in the US which triggered the collapse of the stock market and economic meltdown felt around the globe. Governments and central banks subsequently took actions to stimulate demand by pumping money into their respective economies and … Read the rest