The chief economist for one of the world's largest banks is warning that recovery from the next recession will present "titanic problems" for policy makers. HSBC chief economist Stephen King warned in a note to investors that unlike the 2008 recession, there is a lack of "policy ammunition" to jump start the economy out of a downturn. Business Insider: In a note to clients Wednesday, he warns: "The world economy is like an ocean liner without lifeboats. If another recession hits, it could be a truly titanic struggle for policymakers." Here's King (emphasis added): Whereas previous recoveries have enabled monetary and fiscal policymakers to replenish their ammunition, this recovery — both in the US and elsewhere — has been distinguished by a persistent munitions shortage. This is a major problem. In all recessions since the 1970s, the US Fed funds rate has fallen by a minimum of 5 percentage points. That kind of...(Read Full Post)