The Path From Global Recession to "Full-Blown Depression"
Despite the fog of post-Dow 10,000 hoopla, CNBC found its way to interview the strategist and N1 Asset Management CEO Nicu Harajchi who, practically right out of the gate, said that the current “global recession will turn into a full-blown depression.”
He pointed to the G20 with “cross border capital injections of $5 trillion this year” that have only served to boost financial services firms, and particularly those on Wall Street. He criticized efforts at stimulus which is not “not seeing Main Street making any money,” and noted that this is the case in the US, Europe, and Asia.
At the same time, Harajchi pointed to practical concerns that increasingly unemployed consumers are “struggling with their mortgages, with their credit,” and there’s no real end in sight.