Busted: Bankers and The Global Economy

July 2, 2008

Welcome to the “Slow-Motion” Recession

“It’s a slow-motion recession,” said Ethan Harris, chief United States economist for Lehman Brothers. “In a normal recession, things kind of collapse and get so weak that you have nowhere to go but up. But we’re not getting the classic two or three negative quarters. Instead, we’re expecting two years of sub-par growth. Growth that’s not enough to generate jobs. It’s kind of a chronic rather than an acute pain.” Harris should have some idea as his company is a major player as part of the problem as an investment banker. Yep, things have “kind of collapsed.” Conditions are making honest men out of economists. Pervasive weakness is a more accurate concept.

The European Union bankers have a more apocalyptic take on what to expect here (more…)

Create a free website or blog at WordPress.com.