It now appears that the U.S. and global economy is facing the worst of the shocks that led to the U.S./Global recessions of 1974-75 and 1980-82 (stagflationary shocks from oil prices) together with the shocks (asset/credit bubbles gone bust) that led to the recessions of 1990-91 and 2001. The combined mix of the worst shocks that led to the last four U.S. and global recessions (1974-75, 1980-82, 1990-91, 2001) is thus quite deadly and therefore one of the reasons why this will not be a short and shallow recession (V-shaped and lasting only 6 months) in the U.S. but rather a longer, uglier and deeper one (U-shaped and lasting 12 to 18 months).

Let us detail how the current U.S. and global economic outlook shares the worst of the shocks of the last four U.S. and global recessions…