“HSBC economist Stephen King yesterday published a weighty analysis titled ‘the world economy’s titanic problem’ that pointed out that it has been six years since the trough of the last US recession.  ‘If history is any guide, we are probably now closer to the next one,’ he said. Business cycles always turn, and after six years of growth, even at a pedestrian rate, the current recovery is old.  King’s point – which explains the Titanic reference – is that policymakers are out of lifeboats if a recession were to arrive. The US Fed has dealt with past recessions by cutting interest rates by at least five percentage points. That is obviously impossible today because rates are still on the floor.”

http://www.theguardian.com/business/nils-pratley-on-finance/2015/may/13/us-economy-is-signalling-an-iceberg-were-out-of-lifeboats

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