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Posts Tagged ‘economy recovery’

Longest economic expansion in more than 150 years!

Saturday, July 4th, 2015

According to Allen Sinai, Decision Economics, the current economic expansion in U.S. may exceed the 10-year expansion of 1990s. If that is true (of course… no one would predict what would happen next month, especially given current Greek situation), this is not a bad time to buy a house or start a business. Below charts from Business Week article are giving lot of hope.


















Source: Business Week

Be Ready For More Pain

Thursday, February 12th, 2009

Many economists believed that U.S. economy will recover in the second half of 2009. Recent developments in the economy and politics changed that perception. Many economists in the latest survey by Wall Street Journal believe that a 2009 “second-half recovery” is looking much less likely.

Many economists think that U.S. would see annualized GDP growth of 4.6% decline in stead of 1.2% increase estimated earlier. Forecasts for the April-June period have seen a similar shift, from a 1.9% growth forecast to now a 1.5% decline.

“We’re in trouble,” said Brian Fabbri, chief economist at BNP Paribas. “We don’t have sufficient economic plans at present to resolve the banking system or the financial crisis, and the stimulus package seems loaded for 2010.”

In May 2008, Wall Street Journal published an article that said “The worst of the financial pain may have passed, but the economic pain could be just starting.” Both financial and economic pains still persist. In that article, Nouriel Roubini, an economist who heads RGE Monitor, predicted that a wave of defaults on industrial loans, municipal bonds and consumer credit was coming, which would trigger another wave of financial-system distress. He was right. Now, Nouriel Roubini thinks that nationalizing the banks, at least temporarily, is the best way to solve the current crisis.

Politicians and economists may take lot of time to fix this crisis. Until then, tighten your wallet to survive more prolonged pain.

Related Links: Wall Street Journal Article | Dr. Roubini in Bloomberg News (Video)

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