According to financial experts Nouriel Roubini and Kenneth Rogoff in an interview with CSNBC explained that we will not be getting out of the recession anytime soon.
“People talk about a bottom of the recession in June, but I see it more like six to nine months from now,” Roubini said. “The green shoots everyone talks about are more like yellow weeds to me.”
The recent resurgence of the stock market is just a reaction to the larger than life stimulus package the government has put into place.
“I think there will be a bounce in the second half of the year from the massive stimulus package,” Rogoff said. “But I think the longer run trend is very slow, so we’re vulnerable to dipping down again sometime in the next couple of years, like Japan.”
These men believe that inevitably our country will need to truly hit rock bottom to rise to greatness again. The path that we are taking will most likely prolong the recession to to the constant dips in the market. I believe that it is a very good thing that the second quarter can be a positive quarter for the market but we must keep it in the green.
“Roubini said that the financial crisis was more than a crisis of confidence. “It was a crisis of excessive leverage of housing and the corporate sector,” said Roubini. “We’re not reducing the leverage, we’re pushing the losses from the private sector on the government and increasing public debt. That’s going to be a drag for growth.”
To continue to grow our country needs guidence and leadership when it comes to spending the governments money. As an American citizen I can say that I feel comfortable that our country under the leadership of President Barrack Obama will prevail and succeed.
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