What the Pros Say: No Recovery Until 2010
Despite recent gains in the stock markets, many experts remained grim and skeptical about an economic recovery.
No Recovery Until 2010
IMF managing director Dominique Strauss-Kahn said this year would not be a good year for the global economy and unfortunately, one shouldn’t expect a recovery before the beginning of 2010. However, he said stimulus packages and other efforts by the U.S. and countries around the world are showing some effects.
Signs of Stabilization vs. 'A Lot of Risk'
“Our baseline [unemployment] scenario is about 9 percent, although we think it’s going to go up to 10 percent in early 2010. Our worst-case scenario is closer to 13 percent," said Beth Ann Bovino, senior economist at Standard & Poor's. "So while we are seeing some signs of stabilization in the economy, meaning that the downside does not seem to be as severe as we had worried about, there’s still a lot of risk out there that we have to take into account.”
'It's Not a Recovery'
Former Bank of England policy maker William Buiter remained skeptical about the economy and said the only glimmer of optimism is just a “slowing pace of decline.”He said that it is hard to deny government reluctance to force unsecured creditors to absorb bank losses.
A Wall Street Revolution?
A study revealed that returns over the next decade will be half the size of the returns that the industry generated in the last two decades. Suzanne Duncan of IBM Institute for Business Value said according to the report,Wall Street may look dramatically different in just a few years.
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