Yale University Senior Lecturer and Executive chairman of Morgan Stanley Asia Stephen Roach thinks it's unwise to deny the possibility of a "double-dip" recession. And it's even "ludicrous" that the administration refuses to recognize the possibility.
"I am an advocate of the view that post-crisis recoveries are weak and much more vulnerable to double dips than most of the talking heads you have on this show," he told CNBC Monday morning. "I've seen repeatedly categorically denials from the president on down no danger of a double dip. It's ludicrous to talk about no danger of a double dip in a weak, post-crisis recovery. You've got to be alert for that possibility."
You can watch his comments below:
That comes as John Mauldin predicts a 2011 recession:
The data this week was just ugly. Even the uptick in the leading economic indicators, seized upon by so many talking heads, must have a large asterisk beside it.
This week we look at the increasing probability that we are headed for recession, and the follow-on implications. ...
With the Fed artificially holding down rates on the short end of the curve, we are not going to get an inverted yield curve this time, so we have to look for other indicators to come up with a forecast for the US economy. We grew at less than 1% in the first half of the year. That is close to stall speed. And that was with a full dose of QE2!
But remember, according to the president, the economy is better since he took office.