Global View October 2015 - 2016: The First Recession Involving Falling Not Rising Interest Rates

Deteriorating US corporate finances are already curtailing new orders and depressing industrial activity. Negative economic surprises are building. Near-zero short-term interest rates and even falling long-term rates seemingly have little punch. In fact, could this be the first recession heralded by a fanfare of falling, not rising, interest rates? This seems a puzzle, but it may not be. The issue for markets is always weak funding, not high interest rates.