Global recession unlikely, OECD says

[mike r]

Source: Associated Press

The global economic recovery could be slower than expected but another recession remains unlikely — especially if governments don't overdo their spending cuts, a leading international economic body said Thursday.

In its latest economic assessment, the Paris-based Organization for Economic Cooperation and Development urged policymakers around the world to be careful not to choke off the economic recovery by cutting back on spending too much and too soon.

"If the slowdown reflects longer-lasting forces bearing down on activity, additional monetary stimulus might be warranted," said the OECD's chief economist Pier Carlo Padoan. "Where public finances permit, planned fiscal consolidation could be delayed."

The OECD's recommendation on austerity measures represents a shift from its view just a few months ago when it urged governments around the world to get a grip on ballooning budget deficits.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5iI6DAtP5QYfEu_hmL5Fl0FD4Ah8AD9I4F66G0

[DJ13]

1. "We'll muddle along at near 0 growth, but the wealthy will be happy"

"Sucks for the rest of you, but we dont care about you anyway"

- signed,

The Elites

[UndertheOcean]

5. 0 growth is the only sustainable kind of growth

[99 Percent Sure]

2. "Nouriel Roubini Sees Growing Risk of Double Dip Recession in US"

September 7, 2010

NYU Economics Professor Nouriel Roubini believes that the risk of a double dip recession is growing in the United States. He assesses the probability of a double dip at 40%, the other scenario being subpar economic growth (under one percent), which feels like a recession in terms of high unemployment, growing public deficits, declining home values and increased losses among banks and financial institutions.

"You don't need negative economic growth to feel like a recession when growth is well below trend growth," Roubini said in a recent Financial Times interview. Even if a double dip is technically avoided in the last quarter of 2010, Nouriel Roubini's forecast for 2011 is dire. He sees the risk of a double dip recession increasing, along with widening credit spreads and interbank lending rates. Compounding his gloomy projection, Roubini sees little left for policymakers to grapple with, either on the monetary or fiscal side. In particular, he sees another flurry of quantitative easing by the U.S. Federal Reserve as being "impotent."

The downbeat perspective of Roubini on the U.S. economy extends to Europe, where he believes the recent impressive growth figures in Germany are merely temporary. Furthermore, he points out, Germany is the best performing economy in the Eurozone, where the remaining countries are facing disaster. Half of the Eurozone is already experiencing a double dip recession. In addition, Japan is courting a double dip, and even strong emerging economies such as China are showing signs of an economic slowdown.

The economist known as "Dr. Doom" is actually trying to view economic trends in a realistic manner. If his interpretation of emerging trends strikes a chord of doom and gloom, one needs to look critically at those trends rather than marginalize the messenger. It should be recalled that when Nouriel Roubini issued his warning about the coming collapse of the financial order as we once knew it, based on a house of cards and subprime mortgages, he was harshly ridiculed by many mainstream economists. All the more reason to listen to what he has to say about the current state of the global economy.

http://www.huffingtonpost.com/sheldon-filger/nouriel-roubini-sees-grow_b_706611.html

[99 Percent Sure]

3. But whatever.... n/t

[ixion]

4. ....

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:rofl:

:spray:

:rofl:

Sorry, I'm okay now. Yeah, right. Everything is going to be just ducky. :rofl: