Let’s continue on the economic posting theme, shall we?
Nouriel Roubini, the economist who predicted the entire financial crisis several years ago, has come out and stated the economy may face even more difficulty next year.
I still expect that economic growth in the U.S. is going to be negative through Q4, and that we’ll see positive growth in Q1,” Roubini told Reuters in an interview on the sidelines of the Seoul Digital Forum.
“The U.S. recession is going to be U-shaped, lasting roughly 24 months,” he added. “Compared to the current consensus that says we are practically at the end of the recession … my view is: no, it’s going to last another six to nine months before it’s over.”
…Roubini stood by a recent article in which he mentioned the possibility of a “perfect storm” in 2010.
“There is even a risk of a double dip, a W-shaped recession at the end of next year,” he said, a combination of rising oil prices, rising public debt and increases in real interest rates, rising concerns about inflation and the expiration of a number of tax cuts in the United States.
While I was originally skeptical of Roubini when I first read his work, I’ve since come to pay attention to his works. The price of oil – remember yesterday how Saudi Arabia thought the world could handle $80 oil… yea, not so much – the debt we’ve put on the books in trying to save the economy, and inflation may do use in when it comes to economic recovery.
Sure, anything can change. We are not even out of the woods with our current situation, so talking about what may come next is pure speculation, but I’ve had a lot of fear about energy, debt and inflation ever since the crisis started up. I’ve always thought it would come back to haunt us. I’m glad to see I’m not the only one.
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- Talk about a mixed message on the economy… My views on the economy are, well, pessimistic at best and apocalyptic at worst....
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