Growth in the United States will fall “well below” 1 percent in the third quarter, said Nouriel Roubini, a New York University economist.
The chances of another recession are at 40 percent, he wrote in an email to Bloomberg.
“With growth at a stall speed of 1 percent or below, the stock markets could sharply correct, and credit spreads and interbank spreads widen while global risk aversion sharply increases," Roubini said.
"Thus a negative feedback loop between the real economy and the risky asset prices can easily then tip the economy into a formal double-dip,” Roubini said. [more]
He failed as a day-trader and barely survived in New York on a beer budget, but Marcos Esparza Bofill has been hit with a $172 million tax bill by the IRS. [more]
Economist Mark Skousen, the organizer of Freedom Fest – an annual gathering of libertarians – says that fighting for freedom this year is more critical than usual. He writes on Freedomfest’s website: [more]
A little off topic, but I know some of you will appreciate this:
The Policeman Is Not Your Friend
The Federal Reserve’s decision to expand its quantitative easing by purchasing more Treasuries is a dangerous one, says Keith McCullough, CEO of research firm Hedgeye.
“That could lead the country to the brink of collapse,” he wrote in a Fortune magazine column.
McCullough agrees with economists Carmen Reinhart and Ken Rogoff, who recently wrote that government debt in excess of 90 percent of GDP pulls down economic growth.
“It's a point from which it's almost impossible to return,” McCullough wrote. [more]