MarketWatch: Roubini forecasts recession will last 2 years

[marmar]

Roubini forecasts recession will last 2 years
By Rex Nutting

WASHINGTON (MarketWatch) -- The U.S. recession will last two full years, with gross domestic product falling a cumulative 5%, said Nouriel Roubini, chairman of RGE Monitor. Roubini was one of the first economists to predict the recession and the credit crunch stemming from the housing bubble. For 2009, Roubini predicts GDP will fall 3.4%, with declines in every quarter of the year. The unemployment rate should peak at about 9% in early 2010, he said. Consumer prices will fall about 2% in 2009. Housing prices will probably overshoot, dropping 44% from the peak through mid-2010. "The U.S. economy cannot avoid a severe contraction that has already started and the policy response will have only a limited and delayed effect that will be felt more in 2010 than 2009," he said.


http://www.marketwatch.com/news/story/Roubini-forecasts-recession-last-2/story.aspx?guid=%7BD3E17944%2DFFE5%2D40D3%2DA0E4%2D564C8F901DDE%7D&dist=SecMostRead

[Better Believe It]

1. All the more reason to kick the infrastructure/works projects up to at least 800 billion

and eliminate most of the 300 billion in tax cuts/breaks.

K&R

[Skink]

2. The recession that started under Bush right?

[Mojorabbit]

3. I think that is optimistic. nt

[Karenina]

4. HAL-LO!