Overhead on the streets of New York City this morning....
---> David Rosenberg to Stock Market: "US economy in form of depression"
---> Stock Market to David Rosenberg: "Depression? If that means more stimulus and free money, we're all for it. Buy Stocks!"
(11 minute video, email readers will need to arrive at website to view) Please note, Rosenberg is considered a
Just in time for the holidays: More gloom and doom from a well-known economist. David Rosenberg, who used to be Merrill Lynch's chief economist and now works for Gluskin Sheff of Canada, told CNBC Tuesday that the US economy is mired in an economic crisis that shows only scant signs of abating.
"We're in a form of Depression," Rosenberg said in a live interview. "Depressions...typically happen after a prolonged period of credit excess morphs into a collapse and you get asset deflation. We had asset deflation and we had a contraction in private-sector credit."
Rosenberg is just the latest well-known expert—including New York University's Nouriel Roubini and Pimco bond fund's Mohamed El-Erian—to warn that the economy remains mired in either no growth or slow growth that will last several years.
"This is a different animal than the garden-variety of recession that we're used to forecasting in the post-World War II era," he said. "The Fed started reducing rates in 2007 and here we are debating when did the recession end." "We are basically in a post-bubble credit collapse," Rosenberg said. "Is the recession technically over? You know what? All the expert seem to agree on that. That's what has me a little nervous."
[Oct 19, 2009: David Rosenberg on CNBC]
[Oct 2, 2009: David Rosenberg Makes the Case for Canada as a Low Beta Emerging Markets Play]