We may have a crisis ahead

The market rallied today after the European Central Bank president Draghi hinted on Thursday that the Bank was ready to laugh a fresh round of stimulus for the eurozone in March. Moreover, Mark Carney also said that he would not increase the interest rates before. This may be a piece of good news, but I still believe the ECB needs to come out with new ideas in order to make their policies more effective. The current oil price reaches the 12 year lowest point. This is not good for the global financial market. More importantly, the low oil price may harm the green energy industry. The slowdown of the emerging market economies also reflect the weak demand from the developed countries. There could be an economic recession in 2016 in a global scale. However, the current situation is different from the 2008 crisis. The financial market is not likely to the cause of the crisis if it happens. It would be caused by the current low oil price, the overuse of expansionary monetary policy and the bubble burst due to lack of market confidence.