The worst of the crisis is yet to come as Foreign Policy
| Date: February 1, 2009 | Source: Economic @ 21 |
| Category: Economy | |
Votes: 1 Rating: 5.00 / 5) 
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According to business magazine Foreign Policy , five prominent economists (Nouriel Roubini, Stephen Roach, David Smick, Robert Shiller and Dean Baker), which foresaw the start of the international economic crisis, announce now that "the worst is yet to come."
- Nouriel Roubini is chairman of RGE Monitor and professor of economics at the Stern School of Business, University of New York, USA.
- Stephen Roach is chairman of Morgan Stanley Asia.
- David Smick is director of The International Economy magazine and author of The World Is Curved: Hidden Dangers to the Global Economy (Penguin, New York, 2008).
- Robert Shiller is professor of economics at Yale University and chief economist at MacroMarkets LLC. He is the author of The Subprime Solution (Princeton University Press, Princeton, 2008).
- Dean Baker is co-director of the Center for Economic and Policy Research of the U.S. Center for Economic and Policy Research.
The predictions for this year of the five authors are "alarming," and predicting that the global economy continue to deteriorate as a result of the increase of the harmful effects of 12 bubbles that eventually burst, the spread of the recession in emerging economies and future weakening of the dollar that the currency will "forever lose its preeminence" in international finance.
Some of the phrases predictions of these authors in the past:
"Since the U.S. is an essential part of the global economy, there are genuine grounds for concern about the possibility of a U.S. financial virus could mark the start of a global economic contagion" N. Roubini (March 2008)
"If, as I suspect, the U.S. consumption now starts a sustained deceleration, there will be unmistakable impact on exports to the U.S. in many regions of the world," Stephen Roach (October 2006)
"The size of financial markets has become so huge that there is no means to maintain stability to create a psychology of confidence. Governments alone can not help but project onto the market a sense that they know what do "David Smick (March 2008)
"I worry that the drop in home prices end up being the worst since the Great Depression," Robert Shiller (September 2007)
"If home prices are back up to the general price level, will be eliminated over $ 2 trillion in wealth on paper and the recession will worsen considerably. And the housing bubble collapse jeopardize the survival of Fannie Mae and Freddie Mac "Dean Baker (September 2002)
More details of the latest articles by these economists can be found here:
Nouriel Roubini - Warning: gloomy times ahead
Stephen Roach - A lethal shock
David Smick - Good luck Barack
Robert Shiller - are you missing a lot?
Dean Baker - You have to watch the dollar
