(10 am. – promoted by ek hornbeck)
Bloomberg TV’s Margaret Brennan speaks to Nouriel Roubini, co-founder and chairman of Roubini Global Economics LLC. Roubini tells Brennan, “we’re going into a recession based on my numbers” and that the Federal Reserve and other authorities no longer have the ability to provide emergency support.
There seems to a consensus here. Just last week Nobel Prize winning Economist Joseph Stiglitz told Bloomberg the same thing:
“The unemployment situation in the U.S. is very severe and very probably going to get worse,” Stiglitz told reporters today at a conference in Lindau, Germany. “There’s a very high probability we’ll go into double dip.”
snip
Stiglitz said calls by policy makers to engage in deficit- cutting austerity measures were heading in “exactly the wrong direction.”
“The most important way to address the deficit is to get America back to work, to get the economy back to full employment,” Stiglitz said at an annual gathering of Nobel Prize-winning economists. “Austerity is going to get us predictably into trouble. Spend the money on investments, and those investments will lead to higher growth.”
Two other points were made about the current economic crisis by Paul Krugman. One is that the economy has not really recovered and that the Federal Reserve needs to take firmer action to stimulate job growth. The non-recovery is best illustrated with this chart provided by Krugman:
Krugman’s second point is about debt, federal and personal, that there has not been an explosion in debt over the past few years
There have been hints about President Obama’s jobs plan that he will present to a joint session of Congress Thursday night but it needs to be big and bold but that’s doubtful with this president.
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Maybe it doesn’t meet the technical criteria but I think Krugman was right when he called it a Lesser Depression, or whatever it is that he called it. And who knows yet whether it will be Lesser?
will anybody listen to Roubini this time? I guess they are listening if this is being published but will the Obama admin listen to any of his advice? Certainly not listening to a thing Krugman has to say, or if they are, they aren’t showing it.
since 2001.
I just finished a cover letter today for a job that pays me more than I make now, but less than I made ten years ago.
But then again, I always knew my liberal arts degree only made me qualified to go back to school. Such is the new normal.
Recession, depression, repression, deception. Whatever, the job market sucks. I was stupid to think a bachelors degree was my pass to the middle class like it was when my parents made their way. I should have known better.
Well enough whining from me. Back to work.
Excellent post. Thanks!