Rangerland Forum Information

[SpanishJack]

http://www.reuters.com/article/InvestmentO...E55F4ET20090616

Roubini, who rose to prominence for predicting the global credit crisis, tore down the "green shoots" theory that a rebound is imminent, saying there was a significant risk of a "double-dip" recession where the economy expands slightly only to begin contracting again.

Perhaps Mr. Roubini and President Obama should have lunch and discuss our economic future.

Roubini, the head of economics research firm RGE Global Monitor, said the U.S. jobless rate, already at a 26-year high of 9.4 percent, would reach 11 percent before it begins to ease. He added that he saw few engines for growth given that U.S. consumers are tapped out

President Obama claimed that jobless rate would not go over 8 percent, but he and his economic team praised last week the fact the economy only lost 300K+ jobs last month vs. over 500K+ the previous month.

He said weak growth would allow the U.S. central bank to leave interest rates near the current rock-bottom levels for the foreseeable future. Eventually, however, trillions of dollars of unprecedented emergency measures to heal the financial system will need to be mopped back up to prevent an upsurge in inflation.

Rampant inflation could lead to negative economic cycles like the ones that plagued much of the industrialized world in the 1970s.

I know many of you were not probably born yet in the 70's. I came as a grade school kid in '74 and lived the economic woes under he carter administration. The migration of manufacturing jobs elsewhere started in that time frame.

He said the central bank did the right thing to avoid an outright depression, but is left with emergency lending programs that are clearly not sustainable.

because we are broke. Continue to print money with no economic growth in mind will make matters worse.

[Hockey101]

Obama is a politician, not an economist, though. Of course he is going to shoot optomistic numbers and in a way i don't blame him for that. I do blame him for having more interest in his own agenda, though. Also, Obama needs to ease on his love for being on TV. Enough with the media stories and his meaningless speeches. We have a domestic crisis of our own, and hours spent on TV are wasted.

Cutting interest rates is causing a danger of inflation and arguably you can say that we're already going through inflation. There are obvious pros and cons for decreasing and increasing interest rates, but i think they are standing too low.

I think that sooner or later interest rates will have to go up or else we'll be facing a bigger issue with uncontrollable inflation.

Obama took this situation too lightly, along with the idiots in Congress (both parties), where they just give out money left and right and starting to own pieces of the private sector. But, shooting optomistic numbers is something a politician is expected to do to try and boost confidence in the economy. Bush did the same as well.