Roubini is on CNBC saying that while he sees the worst behind us he sees a weak recover and rising unemployment. The recovery will see growth of barely 1% for the next few years and unemployment will peak around 11% next year. The recession will end in a technical sense at the end of this year but will feel like a recession for much longer.
I agree with every word of it, for a change. As I’ve noted several times on these pages in the past, the US economy will be a much more government-centric one coming out of this recession than when it entered and it will therefor grow more slowly, like Europe, going forward.
