• Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
  • Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!

Coronavirus: Leading economist warns of 10 years of depression and debt

Collapse
X
  •  
  • Filter
  • Time
  • Show
Clear All
new posts

    Coronavirus: Leading economist warns of 10 years of depression and debt

    Dr doom has spoken -


    Economist Nouriel Roubini has warned of a prolonged downturn and sluggish recovery from the coronavirus.

    Nicknamed Dr Doom for his gloomy predictions, Professor Roubini said there are some jobs that simply will not come back after this crisis.


    Even if the global economy recovers this year from the impact of the coronavirus, it will be "anaemic".


    He warned of "unprecedented" recession. Professor Roubini foresaw the financial crisis in 2008 before many others.


    "During the global financial crisis it took about three years until output fell sharply," he told the BBC's Talking Asia programme from his home in New York.


    "This time around it didn't take three years, not even three months. In three weeks there was a freefall of every component."


    Drastic
    Professor Roubini also said any recovery will be in the shape of what economists call a "U", or even "something closer to an L" - what he calls a "Greater Depression."


    What shape will a recession take- - BBC News
    China scraps annual growth target for first time
    World Bank warns 60m at risk of 'extreme poverty'
    A U-shaped recovery means that growth will fall and bottom out, and then pick up only after a prolonged period of slow or no growth.


    An L shaped recovery is even more drastic - falling sharply and staying there for an extended period of time.


    That's because of how many jobs have been lost in both rich and poor countries as a result of massive lockdowns to combat the virus.


    "These jobs that are gone are going to come back only in part, with lower wages, no benefits, part-time," he said.


    "There will be even more insecurity of jobs and income and wages for the average working person."


    Bouncing back?
    His warning comes as the number of coronavirus cases globally tops five million, with many countries seeing a second wave of infections and struggling to reopen their economies - a key factor in whether economic growth can bounce back quickly.


    "You can open the stores but the question is whether they're going to come back," he says. "Most of the shopping centres in China are still empty. Half of the flights aren't there. German shops are open but who wants to go and shop?"


    Emerging Asia though will see better growth than "other advanced economies."


    But there will be a greater split between the US and China, and many Asian countries will be forced to choose between the two superpowers.


    "Each one of them is going to say to the rest of the world, either you are with us or against us," he says. "Either you use my AI systems, my 5G, my technologies, my robotics. Or you are using the one of my rival's. Therefore there is going to be a more divided world."


    Professor Roubini's moniker of Dr Doom was earned after he was famously and consistently negative on the global economy's prospects - even as the US entered a stellar decade of stock market returns.


    When asked whether holding a negative position for so long meant that at some point he would almost certainly be right, he told me he prefers the name Dr Realist, to Dr Doom.


    "When everyone said that China was going to have a hard landing in 2015, I said it will be bumpy," he told me. "I've actually been more optimistic than Wall Street was. The people who say I'm a broken clock that is right twice a day have not followed me."
    source: Coronavirus: Leading economist warns of 10 years of depression and debt - BBC News
    "Never argue with stupid people, they will drag you down to their level and beat you with experience". Mark Twain

    #2
    Sounds like a threat to me

    Comment


      #3
      Originally posted by AtW View Post
      Sounds like a contrarian indicator to me
      FTFY

      Comment


        #4
        When asked whether holding a negative position for so long meant that at some point he would almost certainly be right, he told me he prefers the name Dr Realist, to Dr Doom.
        Sounds like a certain poster on here
        I am what I drink, and I'm a bitter man

        Comment


          #5
          up again today
          I'm alright Jack

          Comment


            #6
            Roubini has been the bear's bear goto man for as long as I can remember.

            I don't think he has quite yet grasped that our elite will do anything, and I mean absolutely anything to keep this party going.

            Comment


              #7
              Originally posted by TwoWolves View Post
              Roubini has been the bear's bear goto man for as long as I can remember.

              I don't think he has quite yet grasped that our elite will do anything, and I mean absolutely anything to keep this party going.
              They can try to keep the stock market party going, but not the "economy" party.

              Comment


                #8
                Oil up again, that's not a sign of an economy that will spend the next 10 years in a deep depression.

                Refineries in the US processing 0.5 million more barrels a day than they were the week before.
                I'm alright Jack

                Comment


                  #9
                  Now you know how we feel reading your "charts".

                  Comment


                    #10
                    Originally posted by BlasterBates View Post
                    Oil up again, that's not a sign of an economy that will spend the next 10 years in a deep depression.

                    Refineries in the US processing 0.5 million more barrels a day than they were the week before.
                    At this point, I'm going long, but only in a half-arsed way - another 40k in cheap index-linked funds, no individual stocks (some individual companies will fold, no doubt). I reckon the markets are pretty much upwards now for the next 3-6 months. No signs of a second wave yet. It's dissipating much more quickly than I'd anticipated. The scootie contrarian position (do the opposite of scootie) looks to be foolproof, again.

                    Comment

                    Working...
                    X