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HomeStephen Roach Provides a Wealth of Sense on Cents
Posted by Larry Doyle on July 9th, 2010 10:23 AM |
The Wall Street Journal just released a fabulous interview with Stephen Roach, chairman of Morgan Stanley Asia and soon to transition to Yale University. Roach has always been one to speak his mind, but he strikes me as being even more forthcoming in this interview. What does Roach have to say? Let’s navigate, Stephen Roach: The Alan Greenspan of Asia?,
On the likelihood of a “double-dip” in the U.S.:
Roach: I’d give it a higher probability than most, maybe 40% at some point over the next year. We have a weak recovery, weak labor market, weak consumer purchasing power…and a consumer that’s unable to rely on property and credit bubbles to support consumption anymore. So if you have a disappointing consumer and any kind of unexpected shock you could go down again. […] Double-dips are not as infrequent as you might think…Weak recoveries leave you vulnerable to shocks. (more…)
