Despite signs that the GDP and stock market were recovering just nicely thank you, we’re in a depression. David Rosenberg, economist and market watcher says don’t get to comfy with economic indicators showing a postitive up tick. He says that even during the Great Depression, positive gains in GDP and the stock market were not that uncommon.
Rosenberg is the first economist with any stature to throw out the dreaded D word. Some economists have been warning for a while that a double dip recession is possible, forget that nonsense says David Rosenberg, Depression II is here already.
In his daily briefing to investors, Rosenberg said that we are currently in a 1930’s style depression. Then, just as now, we see slight positive signs that are simply unsustainable in his words. He went on to say that these things give us a false sense of stability.
“Such is human nature and nobody can be blamed for trying to be optimistic; however, in the money management business, we have a fiduciary responsibility to be as realistic as possible about the outlook for the economy and the market at all times,” he said.
Let’s be honest about the economy. It feels like a depression. If not that then the longest freaking recession in history. Housing collapsed again in July, and a report showing that millionaires are not particularly optomistic was released as well. It’s time for us to be realistic about our situation.
While the wizards in the Obama Administration continue to talk up the economy despite continued economic bad news, realists like David Rosenberg give us the plain truth, despite the pain. As news of David Rosenberg’s depression claim spreads, I’m sure apologists for the current power structure in Washington will do all they can to discredit him. The problem with that is it won’t fix a thing.
Rosenberg is a rich Jew whining about a depression? Give me a break!
Tom:
I have typically agreed with a lot of your posts, but now that your true colors are shining through, I am going to have to question myself. As a Rich Jew myself, I’m a bit disappointed. And as for Shannon, I totally agree that this is a VERY LONG recession….. which means only that the Bush administration should shoulder the blame.
Tom, I am willing to give you another chance , but please don’t let me down.
Actually Felix it would be the Bush Administration, Obama Administration and last but not least the Democrat Congress since January O7′
The latter shares the brunt of the blame.
A rich Jew?
What has Jewry to do with opinion or being rich?
Ever heard Warren Buffet referred to as a “rich Christian?”
Rosenberg is wrong in his analysis and I suspect he is begiining to realize it. Unfortunately, he has morphed from an economist to celebrity which in this case requires continuous controversy, plus correct analysis; a lethal combo that cannot be sustained. Look at his thirteen points. Each and everyone contains “from the peak” as if “the peak” is some holy grail of credibility. Rosenberg will get more and more embarrassing for Gluskin Sheff and he will be moved on, much like Jeff Rubin was eased out of CIBC. By the way oil is down 50% from the peak and has to go up 266% to reach Rubin’s prediction of $200 per barrel for 2011. Any takers?
C.M. (a modestly wealthy atheist)