Economic bottom yet to come

I heard the same thing. Obama just took over and needs to show he is doing well with his stimulus package so only weeks after we have talk of the end of recession. More prudent minds have been saying the recession will continue to get worse regardless of what the politicians want.

 
 


June bottom? Not quite, according to Roubini. CNBC:

“People talk about a bottom of the recession in June, but I see it more like six to nine months from now,” Roubini said. “The green shoots everyone talks about are more like yellow weeds to me.”

“I think there will be a bounce in the second half of the year from the massive stimulus package,” Rogoff said. “But I think the longer run trend is very slow, so we’re vulnerable to dipping down again sometime in the next couple of years, like Japan.”

Roubini said that the financial crisis was more than a crisis of confidence. “It was a crisis of excessive leverage of housing and the corporate sector,” said Roubini. “We’re not reducing the leverage, we’re pushing the losses from the private sector on the government and increasing public debt. That’s going to be a drag for growth.”

“Housing’s going to take five years to recover, and we have a long way to go,” Rogoff said.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: