In this era of 24 hour sound bites, its hard to get an accurate description of what the pundits are saying. One minute we're out of the recession, the next we're in the middle of Armageddon. Case in point, Nouriel Roubini, the famous NYU professor. Everybody wants his opinion, but the end result is somewhat muddled.
Its about time Roubini makes up his mind. Today he correctly stated that the unemployment problem in this country is disastrous, but he needs to be more clear with his outlook, especially now that the markets tend to move when he speaks. Sometimes he states that we are headed for a V shaped recovery, but then other times he states that things will get a lot worse-
As a result of these terribly weak labor markets, we can expect weak recovery of consumption and economic growth; larger budget deficits; greater delinquencies in residential and commercial real estate and greater fall in home and commercial real estate prices; greater losses for banks and financial institutions on residential and commercial real estate mortgages, and in credit cards, auto loans and student loans and thus a greater rate of failures of banks; and greater protectionist pressures.
The damage will be extensive and severe unless bold policy action is undertaken now.
What is the bold policy action that he recommends?
a bold prescription that increases the fiscal stimulus with another round of labor-intensive, shovel-ready infrastructure projects, helps fiscally strapped state and local governments and provides a temporary tax credit to the private sector to hire more workers
He must be joking. The last thing we need right now is for the government to spend more money...that we don't have!