Double-Dip 'Quite Likely' for UK: London Business School Professor

St George's Flag & Houses of Parliament
St George's Flag & Houses of Parliament

All the recent market turmoil indicates that it's "quite possible" that the United States will go into a recession, and "quite likely" the United Kingdom is headed into a double-dip, Richard Portes, professor of Economics at the London Business School, told CNBC Friday.

"Germany is getting soft now, and France is not looking very good, and of course the problems of the peripheral countries are substantial," said Portes.

The UK government has made policy mistakes by "cutting too far, too fast, too soon," he added.

However, the U.S. has different problems, explained Portes. The recent "debt ceiling agreementdoesn't really bring any significant cuts. It's not going to happen the way it was sketched out, and certainly not in the short term."

The Federal Reserve does not have "much left in its arsenal," he went on to say. "It can try another round of QE [quantitative easing] , and I'm actually with those who believes that QE did have a significant effect.

"Sources of demand is what bothers me," concluded Portes, "Where's it going to come from?"

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