Wednesday, August 24, 2011

Nouriel Roubini & Mohamed El-Erian on the Double-Dip Recession

Nouriel Roubini : well the probability of a double dip recession right now in my view is at least at 50 percent not just in the United States but also in most of the periphery of the Eurozone the united Kingdom and Japan had a double dip now they are recovering from the earthquake but their structural growth is anemic , it is a situation in which there was too much debt in the private sector now there is too much debt in the public sector and this painful process of delivering we need to spend less to save more to reduce your debt implies weak economic growth , but the economic growth have now become so weak most of these economies are at a stall sped it is like an airplane that decelerates to the point in which it reaches a stall speed either you accelerate and you get to escape velocity or otherwise you start a free fall

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