UP Ibalon Bicol: A slow recovery from recession is still a threat according to Dr. Doom

A slow recovery from recession is still a threat according to Dr. Doom

8/24/2009 | Posted by mesiamd | Edit Post

Nouriel Roubini, the economics guru of NYU who accurately predicted the morbid economic meltdown still warns of a double dip recession in spite of the rosy forecast made this week by the chairman of the board of governors of the US Federal Reserve Ben Bernanke--- that there are indicators that the recession is wearing away.

Called Dr. Doom for his precise economic forecasts, Roubini shared his thought-provoking opinion in an article he wrote in Ft. com (Financial Times) on Sunday August 23, 2009 entitled “The risk of a double dip recession is rising.”

Unlike many optimists who want to have a rapid V-shaped recovery, Roubini thinks a U-shaped slow healing from the economic downturn is more likely to occur, probably within a two-year period.

Among the Roubini's reasons for a sluggish recovery are the rising unemployment in US and other parts of the world topping 10% till next year. A crisis in solvency prevents banks to lend and the private sector to invest. Consumers are cutting on expenses. The financial system has still to recover from the damage and losses incurred during the meltdown. Energy and food prices are still rising. There is less profits with high risk of debts and defaults as companies avoid expanding their investments and hiring more workers. (Photo Credit: canoraa) =0=

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Labels: Ben Shalom Bernanke, business, Dr. Doom, economy, financial, Nouriel Roubini, recession, recovery, Totie Mesia

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A slow recovery from recession is still a threat according to Dr. Doom

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