January 7th, 2009

punch

The Recession.



This entry's pretty damn depressing, so to offset it I've included a video from the mind-numbing awesomeness that is: Baptazia.




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Nouriel Roubini's an economist who was nicknamed Dr. Doom ever since he predicted "the United States was likely to face a once-in-a-lifetime housing bust, an oil shock, sharply declining consumer confidence and, ultimately, a deep recession." He was also right about "homeowners defaulting on mortgages, trillions of dollars of mortgage-backed securities unraveling worldwide and the global financial system shuddering to a halt." That was back in 2005, so now everybody's hailing him as a genius and a prophet. Others say he was lucky.

Anyway, if you're interested, I've posted his economic outlook for 2009 below:



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It is clear that 2008 was not a very good year and it is official that the current U.S. recession started already in December 2007. So how far are we into this recession that has already lasted longer than the previous two (1990 and 2001 recessions lasted 8 months each)? We believe the U.S. economy is only half way through a recession that will be the longest and most severe in the post war period. U.S. GDP will continue to contract throughout 2009 for a cumulative output loss of 5% and a recession that will last close to two years.


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