ePAROL - Economic News and Views

The great recession of 2007

MarketWatch.com reports that "The United States is headed for a recession that will be 'much nastier, deeper and more protracted' than the 2001 recession, says Nouriel Roubini, president of Roubini Global Economics and professor of economics at New York University."

He says that "Every housing indictor is in free fall. As the housing sector slumps, the job and income and wage losses in housing will percolate throughout the economy."

Beyond that ugly volcanic eruption of bad news, he notes that it gets worse, as "Consumers also face high energy prices, higher interest rates, stagnant wages, negative savings and high debt levels."

This housing bust is, in effect, the "straw that broke the camel's back", and he says that "This is the tipping point for the U.S. consumer and the effects will be ugly. Expect the great recession of 2007 to be much nastier, deeper and more protracted than the 2001 recession."

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posted by G @ 4:45 PM