By Ben Cohen
From the Wall St Journal:
The U.S. recession will last two full years, with gross domestic
product falling a cumulative 5%, said Nouriel Roubini, chairman of RGE
Monitor. Roubini was one of the first economists to predict the
recession and the credit crunch stemming from the housing bubble.
For 2009, Roubini predicts GDP will fall 3.4%, with declines in every
quarter of the year. The unemployment rate should peak at about 9% in
early 2010, he said. Consumer prices will fall about 2% in 2009.
Housing prices will probably overshoot, dropping 44% from the peak
through mid-2010. “The U.S. economy cannot avoid a severe contraction
that has already started and the policy response will have only a
limited and delayed effect that will be felt more in 2010 than 2009,”
It would probably be wise to listen to to Roubini given he predicted the financial collapse before anyone else did. The prospect of a two year recession is grim, but we need to listen to people like Roubini if we are to find a serious solution to the economic woes.
Ben Cohen is the editor and founder of The Daily Banter. He lives in Washington DC where he does podcasts, teaches Martial Arts, and tries to be a good father. He would be extremely disturbed if you took him too seriously.