David Rosenberg of Gluskin Sheff joined Consuelo Mack on Wealth Track this weekend to discuss his outlook for the economy. Rosenberg says we’re just 4 years into a depression that will likely last 7-10 years. He says the economy is likely to begin contracting again in 2012 and that the employment situation is going to deteriorate further. He calls the MF Global bankruptcy the Bear Stearns of 2011.
And Rosenberg is one of the first to admit there is no ‘decoupling’ of foreign or Canadian economies from one another. This is a global downturn. All risk markets are vulnerable together. Watch the video interview here. (Thanks Christian)
Warning: the stock picks offered by the host after the interview are likely to lose value too. Remember dividend paying stocks don’t decouple from bear markets either.
Present problems are real and looming. But longer-term I am actually more optimistic about the prospects for the US economy than for most others. The US has stronger demographics, birth rates, immigration, and a more mature and predictable political and legal system than most countries in the world, especially when compared with places like China, Japan, Russia and Europe. For more on some of these strengths and on the power of the 100 million+ Generation Y following the Boomers (many of whom are those kids “Occupying” parks right now. Boomers better hope those kids get some decent employment prospects, they are going to need them to buy Boomer homes and fund Boomer health care and retirement income into their old age), read Count the people. (Thanks Peter)