10/06/09 Stockholm, Sweden – Joseph Stiglitz, who won the 2001 Nobel Prize in Economic Sciences, has come out to say that investors are “irrationally exuberant” about recovery given US unemployment, which he believes will continue to rise.
His perspective on “big bumps” ahead includes the still-weak housing market, commercial real estate, and too much consumer debt considering the current level of joblessness.
According to a survey of economists conducted by Bloomberg News, the unemployment rate is likely to hit 10 percent by the end of 2009. Stiglitz considers it “pretty clear” that any economic growth this year or next will not be able to “stop unemployment from growing.”
Stiglitz joins other skeptics of the current recovery including billionaire George Soros and New York University Professor Nouriel Roubini who sees the recovery as “not rapid and V-shaped, but more like U-shaped.” Additional details are available from this Bloomberg piece on America’s slow economy.
Rocky Vega
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let’s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
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