Tuesday, July 21, 2009

Recovery for whom?

by Joel Wendland

This economist is predicting the end of the recession by the end of this year by with 11 percent unemployment. Why is it that unemployment rates are the last thing on anyone's mind when it comes to economic issues? How could he say there is a recovery with such high unemployment? Even with the end of an official recession, a second stimulus will be needed to make the economy come back and to protect working Americans from this "recovery."

From CNBC:

Nouriel Roubini, the economist whose dire forecasts earned him the nickname "Doctor Doom", told CNBC Monday that the economic recovery is going to be "very ugly."

Nouriel Roubini

"The recovery is going to be subpar," Roubini said. "I see a one percent growth in the economy in the next few years. There will also be 11 percent unemployment next year and the recovery is going to be slow. It's going to feel like a recession even when it ends."

Asked about his comments in a speech last week about the recession ending in 2009, Roubini said, "I've been saying all along the recession is going to last 24 months. It started in December of 2007 and my view is that it won't be over until December of this year."

Read more and watch the video...