Another US recession 'cannot be ruled out'

[Jade]

This is from my economics professor, Richard Portes. He is renowned macro economist from UK. I felt like sharing his opinion

The prospect of another US recession cannot be ruled out, according to a London Business School expert.

Richard Portes, professor of economics at the School, explained to CNBC that a double-dip recession could also be on the cards for the UK, as a result of the recent turbulence in the world's financial markets.

Cuts made by the UK Government to try and reduce the country's budget deficit might have been made too early and by too great an amount, Professor Portes also indicated.

Turning his attention to the eurozone, he added: "Germany is getting soft now, and France is not looking very good, and of course the problems of the peripheral countries are substantial."

Demand is proving to be a cause of concern for the expert with regards to the US economy, he said.

As to where the demand is going to come from, Professor Portes added: “Not from consumption, as households are uncertain and paying off debt; not exports, in a slowing world economy; not investment, with weak demand and excess capacity.”

 

[fd24]

Threads a joke. They are still in recession. Its the start of the end they are going bust.

 

[Jade]

It seems now that France would be the next country after US to get its rating downgraded from AAA to AA+ by S&P. Germany could follow France.

Is west entering another recession????

 

[Jade]

Threads a joke. They are still in recession. Its the start of the end they are going bust.

Technically US is out of recession, so is UK

 

[888jamie888]

Hopefully the UK's budget cuts will save it. So glad we're not in the euro-zone.

 

[CardSharp]

The bigger scare is not a double dip because that implies eventual recovery, but long term stagnation ala Japan. That's the sht that should give politicians nightmares.

 

[jdme]

All eyes are on super committee. Their bill can set a course for future..or screw it.

 

[fd24]

Technically US is out of recession, so is UK

Yea thats right. Social unrest?

 

[CardSharp]

All eyes are on super committee. Their bill can set a course for future..or screw it.

awww that's so cute, you still the think Washington make-belief politics still matters.

 

[CardSharp]

Yea thats right. Social unrest?

He said technically, I think recession is defined as some arbitrary percentage of negative growth.

 

[jdme]

awww that's so cute, you still the think Washington make-belief politics still matters.

Nah, I believe that without Washington's make-belief political action, this country is doomed. I didn't say that they will actually do something.

 

[jdme]

Recession is 2 consecutive quarters of negative growth or something.

 

[fd24]

He said technically, I think recession is defined as some arbitrary percentage of negative growth.

I know the technical definition of recession. It is defined as the economy contracting in two quarters in succession. But there is a psychological angle to it in that if most people think we are then we are and it becomes self fulfilling.

 

[CardSharp]

I know the technical definition of recession. It is defined as the economy contracting in two quaters in succession. But there is a psychological angle to it in that if most people think we are then we are and it becomes self fulfilling.

Some truth to that. Company decide on expansion of new business according to what they see as the economic climate. Consumer confidence is also mood dependent ie if they think they are going to be axed from their job, they might save the money they earn instead of spending it.

Well let's the just say all of this political shenanigans with the debt ceiling + other factors is depressing the hell of out everyone.

 

[888jamie888]

U.S. National Debt Clock : Real Time

That is mental.