Tuesday, December 29, 2009

SOS Gary Shillings


Bearish Gary Shilling is sticking by his guns:
* The US economy will only grow 2% per year over the next decade, thanks to the clobbered consumer (the growth of 3.7% from 1985 to 2000 will not return and it takes a growth of 3.3% to keep the unemployment stable)
* Excess supply will keep driving prices down
* The Fed won't implement an "exit strategy" for years
* Yes, Q3 GDP will be positive, but Q4 will go negative again and the market will collapse in disappointment. The recession won't end until the middle of next year.

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