The US economy is on the verge of entering a very dark phase, and according to economist Mark Spitznagel, things could easily be on the wrong side of American history, if the situation of the US economy is not catered to, within time. This could be an indeed trying time for the US economy if things are not addressed around the US recession, which could be coming in anytime now, that too, right within the US election season.

Is the US market in danger?

Spitznagel is credited with accurately predicting the US market crashes of 2000 and 2008, that had made the world face a financial turmoil, and this time too, he is hinting at a possible disaster aimed at the US economy, and recession could be a leading factor concerning the same. According to him, he current market rally is temporary, and could be a clear eyewash, as a recession or another underlying disaster could easily be on the cards.

US economy: Things more complicated than they look

Moreover, the euphoria around the sudden market growth, Spitznagel believes, would not last for long, and end up producing adverse outcomes. The US Fed Reserve's decision to issue interest rate slashes, may not come in handy later on, if the recession shows its claws, as they have already issued a massive rate cut a few weeks ago, and any further slashes may lead to the US Treasury facing an alarming crisis.

FAQs:

Is the US economy on the brink of recession?
As far as the current situation of the US economy is concerned, things could end up nearing a recession anytime soon in the near future.

Have the US Federal Reserve issued a rate cut?
The US Fed has finally decided on issuing a massive interest rate cut of 50 bps, which was to alter the course of the US economy, and thwart a recession.