The guru's of the present financial crisis, Nouriel Roubini and Robert Shiller, are saying that the present financial crisis may continue for another six months. They cite the psychological mood during the Great Depression when people were gripped with "fear," a fear that prolonged the depression and which President Franklin Roosevelt addressed.
People are not seeing job creation or an improvement in the economy. Consumer sentiment is deteriorating. The stock market is falling again. Specifically they cite:
- Consumer confidence fell to 49.3 in June from 54.8 in May.
- The economy shrank 5.5% in the first quarter.
- The savings rate reached 6.9% in May, the highest since 1993.
- Home prices in seven metropolitan areas fell .7% in April.
Roubini and Shiller are predicting that "the wave of corporate defaults is going to be massive." "We're not out of the woods."
So what to do next? They contend that the present stimulus is too slow in taking hold and see the need for more stimulus to keep the momentum going.
Should we have a new stimulus package?
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Reader Comments (Page 1 of 1)
7-12-2009 @ 8:57AM
Lee Gibson said...
I wonder if either of these two gentlemen would care to address their contribution to the atmospehere of gloom and doom that exacerbates the fear they speak of. I am also continually amazed at media''s failure to acknowledge the role they play in creating the conditions they describe.
7-10-2009 @ 7:20PM
ij70 said...
Nothing is going to change until municipal, state and federal governments start to cut programs and reduce budgets.
7-13-2009 @ 9:26AM
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