It could get ugly in the US economy before long. While everyone has been distracted by the strong labor market and the decent consumption, the real breakdown in the US economy has been coming from the corporate sector, which is what Paul Mortimer-Lee of BNP Paribas argues in a note titled “US Growth: Storm Brewing?”
“Why have so many, including the Fed, not seen the risks that now appear all too concrete?” asked Mortimer-Lee, chief US economist at BNP. “The answer is that they have been looking in the wrong direction, lulled into a sense of complacency by strong jobs growth and solid consumption. What this view has overlooked is that the threat of recession comes from the corporate sector.” According …CONTINUE
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