Today the worlds economists gathered in Switzerland to discuss their views of the world economy. The New York Roubini Global Economics chairman stated the same old saying which is commonly heard: 'That if the U.S. economy sneezes, the rest of the world catches a cold.' Nouriel Roubini said, "In this case the U.S. is going to have to protracted case of pneumonia," Indicating that the diagnosis was much worse. Now don't get me wrong, the economists who gathered there had different views. And some did not even believe that they would be affected by but is happening in the American economy.
It has been said that there is always a light at the end of the tunnel. But is that true in all cases? What if the tunnel leads into a cave? Would there be light at the end of the cave, or would you have to turn around and walk back the other way?
"The issue of whether central banks are capable of vigorous action, bold action, was answered yesterday. They can't see the world ahead perfectly,..." Said John Snow, referring to the Fed's interest rate cuts.
Stiglitz disagreed as he referred to bad economic management.
A year ago the economists believed that this year the world economy would be brighter. Boy were they wrong.
Nouriel stated that it wasn't whethere or if there is going to be a hard landing for the economy. Roubini said "Rather how hard the landing would be. We're seeing a financial system that is under severe stress," he continued. "The Fed cannot prevent this recession from occurring."
