Writing in his daily briefing to investors, Rosenberg said the Great Depression also had its high points, with a series of positive GDP reports and sharp stock market gains.
But then as now, those signs of recovery were unsustainable and only provided a false sense of stability, said Rosenberg.
Rosenberg calls current economic conditions "a depression, and not just some garden-variety recession," and notes that any good news both during the initial 1929-33 recession and the one that began in 2008 triggered "euphoric response."
"Such is human nature and nobody can be blamed for trying to be optimistic; however, in the money management business, we have a fiduciary responsibility to be as realistic as possible about the outlook for the economy and the market at all times," he said.
The 1929-33 recession saw six quarterly bounces in GDP with an average gain of 8 percent, sending the stock market to a 50 percent rally in early 1930 as investors thought the worst had passed.
"False premise," Rosenberg said. "And guess what? We may well be reliving history here. If you're keeping score, we have recorded four quarterly advances in real GDP, and the average is only 3%."
Rosenberg's warning comes as a slew of major analysts—Goldman Sachs and JPMorgan among them—have slashed GDP projections for 2010 to the 1.5 to 2 percent range.
Rosie's just being honest here. We've been in a hole going on 32, 33 months now. Today's housing news just confirms the worst is still ahead and that the "Obama boom" was nothing more than the mother of all dead cat bounces. We never got out of the "recession" of 2008, really.
If anything, today's news all but proves it. We're in a depression and it's well past time to admit it.
Like what, Paul Ryan's plan to privatize SS and Medicare with...what, exactly?
ReplyDeleteLike the plan to "repeal and replace" health care reform with...what, exactly?
You're the one saying the GOP has a plan, and then not only can you not provide any evidence of one, you're saying that it's my responsibility to research it when you clearly haven't yourself?
Waffles, you really are a terrible troll.
Thread over.
Guess I struck a nerve by mentioning going beyond your comfort zone. You spouted off more talking points you read other blogs or liberal sites, but didn't go look for anything. You want me to look for you when really it's not that hard to find. A monkey with down syndrome can find anything on the internet, Google is an amazing tool.
zomg thread started