Alarming signs of the global economy with indications that there is no recovery and that this slowdown is now the new normal that will last for years.
First, to the devastating figures coming out of the United States showing that US home sales have plunged to their lowest level in decades. People aren't buying with sales falling twice as much as forecast. This is now the biggest threat to America's recovery. So much so that Gluskin Sheff economist David Rosenberg says that the US is now caught in a depression, not a recession and that any signs of a recovery had given people false hope.
It's a problem the world over with British, German and US bond yields being pushed to a record low, signalling that no one is expecting any improvement. European markets are continuing to fall in the global sell off.
When you think about it, that makes perfect sense. The excesses that created the global financial crisis took decades to create, and it's unrealistic to expect the global economy would snap back like a rubber band. The global economy is going nowhere fast, and we should expect low, if any, growth for many years. It's a slow recovery. Some might say that it's better than no recovery, but it won't feel like a recovery.