Goldman Sachs Analyst’s Unsettling Conclusion About This ‘Scary’ Chart

From The Blaze.com (Aug. 31):

When the VIX — an “index of volatility” in the S&P 500 stocks — hits “levels in the high-twenties to low-thirties” for extended periods of time, it’s usually an indicator that the U.S. economy is headed for a recession, according to a Goldman Sachs analyst.

Goldman Sachs released the graph below to put this issue into perspective — and as you can see, the index is currently at “scary” levels.

“VIX levels go back to January 1990. Since that time there have been three recessions. Average VIX levels in the first two recessions (1990-1991, 2001) were 25 and 26 respectively,” Goldman Sachs analyst Krag Gregory said. “The worst of the worst was of course the Great Financial Crisis. Average VIX levels in the 2008-2009 recession were 34.”

After a dramatic spike during last week’s turbulent period, the VIX landed at 26 at the end of the week. [read more]

Well, it looks like Congress and Administrator Obama have beaten the Islamic State in destroying the economy. Is this what Obama meant by the ‘new normal?’ Well, I guess it is better than a depression.