There may be a very nasty recession in 2007.

[War Lord]

Real nasty.

http://www.marke****ch.com/news/stor...ist=TNMostRead

Recession will be nasty and deep, economist says
Housing is in free fall, pulling the economy down with it, Roubini argues

WASHINGTON (Marke****ch) -- The United States is headed for a recession that will be "much nastier, deeper and more protracted" than the 2001 recession, says Nouriel Roubini, president of Roubini Global Economics.
Writing on his blog Wednesday, Roubini repeated his call that the U.S. would be in recession in 2007, arguing that the collapse of housing would bring down the rest of the economy.

Roubini wrote after the National Association of Realtors reported Wednesday that sales of existing homes fell 4.1% in July, while inventories soared to a 13-year high and prices flattened out on a year-over-year basis. See full story.
'This is the biggest housing slump in the last four or five decades: every housing indicator is in free fall, including now housing prices.'
— Nouriel Roubini, Roubini Global Economics

"This is the biggest housing slump in the last four or five decades: every housing indicator is in free fall, including now housing prices," Roubini said. The decline in investment in the housing sector will exceed the drop in investment when the Nasdaq collapsed in 2000 and 2001, he said.

And the impact of the bursting of the bubble will affect every household in America, not just the few people who owned significant shares in technology companies during the dot-com boom, he said. Prices are falling even in the Midwest, which never experienced a bubble, "a scary signal" of how much pain the drop in household wealth could cause.

Roubini is a professor of economics at New York University and was a senior economist in the White House and the Treasury Department in the late 1990s. His firm focuses largely on global macroeconomics.

While many economists share Roubini's concerns about imbalances in the global economy and in the U.S. housing sector, he stands nearly alone in predicting a recession next year.

Fed watcher Tim Duy called Roubini the "the current archetypical Eeyore," responding to a comment Dallas Fed President Richard Fisher made last week in referring to economic pessimists as "Eeyores," after Winnie the Pooh's grumpy friend.

"By itself this slump is enough to trigger a U.S. recession: its effects on real residential investment, wealth and consumption, and employment will be more severe than the tech bust that triggered the 2001 recession," Roubini said.
Housing has accounted, directly and indirectly, for about 30% of employment growth during this expansion, including employment in retail and in manufacturing producing consumer goods, he said.

In the past year, consumers spent about $200 billion of the money they pulled out of their home equity, he estimated. Already, sales of consumer durables such as cars and furniture have weakened.

"As the housing sector slumps, the job and income and wage losses in housing will percolate throughout the economy," Roubini said.
Consumers also face high energy prices, higher interest rates, stagnant wages, negative savings and high debt levels, he noted.

"This is the tipping point for the U.S. consumer and the effects will be ugly," he said. "Expect the great recession of 2007 to be much nastier, deeper and more protracted than the 2001 recession."

He also sees many of the same warning signs in other economies, including some in Europe.

[Tangled Web]

That ****ing sucks.

[Man-Thing]

what's the name of the website? And why is it being censored?

Is it MarketS-H-I-Ttch? Market*******ch?

[Tangled Web]

Bypassing the censor!!!

[Iceman]

The US recession will lead to a recession in the UK too

[Tangled Web]

and in Germany

[War Lord]

There are indications that things are slowing down in Europe as well. This could be really nasty if it goes world-wide.

[Man-Thing]

Originally Posted by Tangled Web

Bypassing the censor!!!

...

Don't you know that W-H-E-N- L-E-T-T-E-R-S A-R-E W-R-I-T-E-N L-I-K-E T-H-I-S T-H-A-T I-T M-E-A-N-S Y-O-U A-R-E S-U-P-P-O-S-E-D T-O M-A-K-E T-H-E S-O-U-N-D O-F E-A-C-H L-E-T-T-E-R?

Show me one letter that is vulgar by itself, and you have a point. But in truth, you just don't understand English.

[War Lord]

Originally Posted by Man-Thing

what's the name of the website? And why is it being censored?

Is it MarketS-H-I-Ttch? Market*******ch?

No, the missing word is watch. It's just a long web address.

[Man-Thing]

Originally Posted by War Lord

No, the missing word is watch. It's just a long web address.

Why does it do it here?

WASHINGTON (Marke****ch) -- The United States is headed for a recession that will be "much nastier, deeper and more protracted" than the 2001 recession, says Nouriel Roubini, president of Roubini Global Economics.
Writing on his blog Wednesday, Roubini repeated his call that the U.S. would be in recession in 2007, arguing that the collapse of housing would bring down the rest of the economy.

[Tangled Web]

Originally Posted by Man-Thing

...

Don't you know that W-H-E-N- L-E-T-T-E-R-S A-R-E W-R-I-T-E-N L-I-K-E T-H-I-S T-H-A-T I-T M-E-A-N-S Y-O-U A-R-E S-U-P-P-O-S-E-D T-O M-A-K-E T-H-E S-O-U-N-D O-F E-A-C-H L-E-T-T-E-R?

Show me one letter that is vulgar by itself, and you have a point. But in truth, you just don't understand English.

Racism.

Nah, I kid, I kid.

[War Lord]

Originally Posted by Man-Thing

Why does it do it here?

I never noticed that, but it's funny.

Well, marke-t-w-a-t-ch.

That's probably why.

[Iceman]

Originally Posted by War Lord

There are indications that things are slowing down in Europe as well. This could be really nasty if it goes world-wide.

Unfortunately the US economy is still a significant driver, particularly for Western Europe and even more so the UK. Time to save the pennies.

[War Lord]

Originally Posted by Iceman/Psylocke

Unfortunately the US economy is still a significant driver, particularly for Western Europe and even more so the UK. Time to save the pennies.

That's largely because the European economy is hampered by the large amount of beaureaucracy that helps support their socialized ways.

If they moved away from socialism, they could develop a strong economy unto its own right.

[enterthemadness]

there was a recession in 2001? guess I didn't notice since I was in 8th grade that fall.

[Iceman]

Originally Posted by War Lord

That's largely because the European economy is hampered by the large amount of beaureaucracy that helps support their socialized ways.

If they moved away from socialism, they could develop a strong economy unto its own right.

Laissez-faire I say.

[War Lord]

Originally Posted by enterthemadness

there was a recession in 2001? guess I didn't notice since I was in 8th grade that fall.

It was a relatively small one and only really affected the tech area.

Also, serious recessions aren't as noticeable by children who are still suckling with mom.

[War Lord]

Originally Posted by Iceman/Psylocke

Laissez-faire I say.

For the most part, it's the best way.

[enterthemadness]

Originally Posted by War Lord

Also, serious recessions aren't as noticeable by children who are still suckling with mom.

_l_.

[Addendum]

Or by 40 year olds who live with their mom, jonty

[War Lord]

Originally Posted by Addendum

Or by 40 year olds who live with their mom, jonty

One day I will be free!

Actually, probably in about 6 months or so.

[Danalys]

so who's bush gonna blame this on?

[Iceman]

How strongly is Canada's economy linked to the US.

[War Lord]

Originally Posted by Danalys

so who's bush gonna blame this on?

I was wondering how the lefties would blame Bush.

[War Lord]

Originally Posted by Iceman/Psylocke

How strongly is Canada's economy linked to the US.

Only about 85% of Canada's economy is totally dependent on the US.