Monday :: Mar 2, 2009

Open Thread

by Mary

Nouriel Roubini writes in the NYTimes that as he had warned, the recession we are in is a deeper and longer recession than we've experienced post-World War 2. And he warns, it could get worse if the right policies are not put in place.

We now face a 1 in 3 chance that, if appropriate policies are not put in place, this ugly U-shaped recession may turn into a more virulent L-shaped near-depression or stag-deflation (a deadly combination of economic stagnation and price deflation) like the one Japan experienced in the 1990s after its real estate and equity bubbles burst.

Gee, Dr Doom is such an optimist.

Mary :: 12:30 AM :: Comments (1) :: Digg It!