The U.S. will most likely enter a recession by the third quarter of the year, according to top economist David Rosenberg. “I don’t think we get out of this without a recession,” Rosenberg said, adding that an earnings recession is already underway. “What’s the stock market not seeing when you’re seeing declining earnings, not slowing earnings, and declining earnings estimates?” Dr. Nouriel Roubini, one of the first economists to predict the 2008 recession, has also warned that another financial crisis is on the horizon. “We’re facing the perfect storm: inflation, stagflation, recession, and a potential debt crisis,” Roubini said. In other news, experts are sounding the alarm over the U.S. labor participation rate, as millions of Americans still haven’t returned to work three years after the start of the pandemic. “A social and economic disaster,” economist Dr. Samuel Gregg said of the situation.
CNBC & Markets Insider/Zahra Tayeb
US stocks face a reckoning as there’s no escaping a recession, says top economist David Rosenberg
US stocks will feel the pinch from the delayed effect of the Federal Reserve’s interest-rate hikes, and there’s no escaping an economic downturn this year, according to David Rosenberg.
“The stock markets and the credit markets seem to think that they have more time than they can buy before the boom really gets lowered on the economy,” the Rosenberg Research chief said Thursday on CNBC, adding that the US economy is not strong.
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Business Insider/Jennifer Sor
A ‘perfect storm’ of recession, debt, and out-of-control inflation is coming for markets this year, ‘Dr. Doom’ Nouriel Roubini says
A “perfect storm” is brewing in 2023, and a markets are going to get hit with a recession, debt crisis, and out-of-control inflation, according to “Dr. Doom” economist Nouriel Roubini.
Roubini, one of the first economists to call the 2008 recession, has been warning for months of a stagflationary debt crisis, which combines the worst aspects of 70s-style stagflation and the ’08 debt crisis.
“I do believe that a stagflationary crisis is going to emerge this year,” Roubini said in an interview with Australia’s ABC on Thursday.
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Fox Business/Breck Dumas
America’s low labor participation rate ‘a social and economic disaster,’ experts warn
By now it’s common knowledge that the U.S. saw an unprecedented drop in labor participation at the onset of the COVID-19 pandemic in 2020 as health concerns, lockdowns and stimulus payments caused tens of millions to abandon or forfeit their jobs.
But three years later, millions still haven’t returned – including many who quit in the middle of their prime working years – and some economists are sounding the alarm that so many capable, would-be earners remain out of the workforce.
When the Labor Department reported last month that unemployment dropped to 3.4% in January, the lowest level in more than 50 years, not all experts were celebrating.
You can read the full article, here.
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