Protectionism ‘Real Threat’ of Recession
August 11, 2011
From CNBC Tuesday, 9th August 2011
As markets braced themselves for another turbulent day Tuesday, one economist warned that the real danger of a double-dip recession is protectionism.
The real threat is protectionism. This debt thing is unimportant,” Roger Nightingale, economist and strategist at RDN Associates, told CNBC Tuesday.
“Don’t worry about debt, worry about GDP, worry about the economy.
“The economy is looking at a serious recession, possibly a major 1930s-style depression, in the near future,” he added.
“If you look at the situation now, we don’t know what growth in the third or even second quarter is going to be.”
He predicted that third-quarter growth would be around zero or slightly negative in the developed world, and that China will suffer as consumers in the US and Europe cut down on their spending on Chinese-made consumer goods.
Markets are awaiting the Federal Open Market Committee’s regular meeting later today. Any remarks afterwards from Fed chairman Ben Bernanke will be followed closely.
This is very serious and it’s going to be awful. That’s why we sell equities and buy bonds,” said Nightingale.