{"id":7340,"date":"2015-04-16T06:12:22","date_gmt":"2015-04-16T11:12:22","guid":{"rendered":"http:\/\/olduvai.ca\/?p=7340"},"modified":"2015-04-16T06:12:22","modified_gmt":"2015-04-16T11:12:22","slug":"why-wobbly-world-markets-are-more-worrying-than-oil-don-pittis","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=7340","title":{"rendered":"Why wobbly world markets are more worrying than oil: Don Pittis"},"content":{"rendered":"<div class=\"story-headline\">\n<h3 class=\"story-title\"><a href=\"http:\/\/www.cbc.ca\/news\/business\/why-wobbly-world-markets-are-more-worrying-than-oil-don-pittis-1.3034038\" target=\"_blank\">Why wobbly world markets are more worrying than oil: Don Pittis<\/a><\/h3>\n<\/div>\n<p class=\"story-deck\"><strong>Central bankers are out of bullets if 1929-level markets go bust again<\/strong><\/p>\n<p>Bank of Canada governor Stephen Poloz says\u00a0the &#8220;wobble&#8221; in the Canadian economy\u00a0caused by the shocking fall in the price of oil is just about over.<\/p>\n<p>But according to some analysts, a more dangerous wobble may be connected to an entirely different mineral: mercury.<\/p>\n<p>And if so, central bankers will\u00a0find themselves helpless to deal with the\u00a0fallout.<\/p>\n<ul>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/bank-of-canada-leaves-rate-unchanged-at-0-75-after-economic-wobble-to-start-2015-1.3033495\">Bank of Canada leaves rates unchanged after &#8220;wobble&#8221;<\/a><\/strong><\/li>\n<li><strong><a href=\"http:\/\/www.cbc.ca\/news\/business\/china-exports-plunge-15-and-talk-of-stimulus-heats-up-1.3030591\">China exports plunge and talk of stimulus heats up<\/a><\/strong><\/li>\n<\/ul>\n<p>In his news conference Wednesday, it seemed\u00a0the bank governor&#8217;s biggest international concern was that the U.S. economy would grow even more quickly than he expected, forcing him\u00a0to raise interest rates sooner.<\/p>\n<p>Considering how everyone pounced on the his recent description of the Canadian economy\u00a0as &#8220;atrocious,&#8221; there is little wonder he did not warn of an impending market crash.<\/p>\n<h2>&#8216;Atrocious&#8217;\u00a0growth<\/h2>\n<p>With growth at\u00a0zero,\u00a0using the term &#8220;atrocious&#8221; was no exaggeration.<\/p>\n<p>However, it just shows that if a\u00a0staid but influential\u00a0character like Poloz\u00a0reminded\u00a0us that markets \u2014\u00a0especially at current elevated levels \u2014\u00a0are mercurial, it<strong>\u00a0<\/strong>could cause\u00a0some serious fallout. Others are not so shy.<\/p>\n<p>&nbsp;<\/p>\n<p>A report\u00a0out of the U.S.\u00a0last month titled &#8220;Quicksilver Markets,&#8221; (quicksilver being an older,\u00a0less frightening word for mercury), contained a far more worrying warning:\u00a0that global stock markets are now hitting levels seen\u00a0just before the bursting of previous major market bubbles.<\/p>\n<p>&#8220;The highest market peaks (1929, 1999\u00a0and 2007) either surpassed or approached this two-sigma level,&#8221; says the report.\u00a0&#8220;Each of these peaks was followed by a sharp decline in stock prices and adverse consequences for the real economy.&#8221;<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why wobbly world markets are more worrying than oil: Don Pittis Central bankers are out of bullets if 1929-level markets go bust again Bank of Canada governor Stephen Poloz says\u00a0the &#8220;wobble&#8221; in the Canadian economy\u00a0caused by the shocking fall in the price of oil is just about over. But according to some analysts, a more [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1799,103,124,195,240,500,943],"class_list":["post-7340","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubbles","tag-canada","tag-central-banks","tag-debt","tag-economic-growth","tag-market-collapse","tag-stephen-poloz"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7340","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7340"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7340\/revisions"}],"predecessor-version":[{"id":7341,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/7340\/revisions\/7341"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7340"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7340"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7340"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}