Morgan Stanley’s Chief U.S. Economist Says Recession Is Here
Richard Berner, Morgan Stanley’s chief U.S. economist, said yesterday at a public finance and pension fund conference in Illinois that the United States is in a mild recession. Berner added that the U.S. housing crisis still has “a long way to go” because of excess supply and caution by both lenders and potential homebuyers. The 2007 winner of the William F. Butler Award for excellence in business economics also warned of an elevated inflation threat which should pressure corporate earnings, contribute to market volatility, and feed a relatively steep yield curve, according to Reuters’ Karen Pierog. She wrote:
U.S. consumers are facing a perfect storm of eroded housing prices, higher energy and food prices and a weaker employment picture, Berner said…
As for energy, Berner said finite supply in the face of rising global demand will keep the price per barrel of oil high.
“My guess is in the next two to three years the equilibrium price will still be north of a hundred bucks,” he said.
Gray’s Papaya, NYC
Source: The Baltimore Snacker
Source:
“Mild recession, modest recovery for US - Morgan Stanley”
Karen Pierog
Reuters, June 2, 2008
June 6th, 2008 at 4:04 am
every country in the world is affected by US regression and i may say this but expect worser situations in the coming years
June 6th, 2008 at 10:46 pm
Thanks for the comment erikko.
“…but expect worser situations in the coming years.”
Agreed…