Gary Shilling: This Is Not just A Temporary, Bear-Recession Dip. But A “Deeper Depression-Style Slow-Growth Likely Till The Election Of 2020

And, like Blanchard, he has been warning us that “much of the excesses and financial leverage built up in past decades, especially in the financial sector globally and among U.S consumers, remain to be worked off.”

Why? The Fed and Treasury’s failed “attempts to bail out the nearly collapsing U.S. private sector” just made matters worse by focusing on bank bailouts rather than jobs. What’s ahead? “Slow global growth in future years.” Not just a temporary, bear-recession dip. But a “deeper depression-style slow-growth likely till the election of 2020.”

Shilling sees beyond today’s lingering hangover of the 2008 banking meltdown, the election wake-up call to corporate CEOs and conservative politicians still demanding deep austerity cuts to solve the debt crisis, and the looming fiscal cliff. Looking years ahead, he warns of ongoing troubles through 2020 as the recovery inches slowly ahead.


Read more at [link to investmentwatchblog.com]