This week on the Big Picture, Jim’s first topic is “Bad Moon Rising”. Jim and John discuss the general turbulence in the markets, the major contraction in global liquidity and the brewing crisis in the European banking system.
They also cover five theories from the experts as to the rising volatility in stocks, bonds, currencies and commodities this year. Jim also goes into detail on what may be causing the problems with the European banks. The next Big Picture topic is “The Fork in the Road”. This refers to the possibility of the Federal Reserve instituting a policy of negative interest rates, as we have already seen in parts of Europe and Japan. Jim discusses the chances of negative interest rates becoming the next policy response by the Fed, and if so, how negative interest rates work and what are some of the economic implications.
