David Rosenberg of Gluskin Sheff was among the few to warn that America faced a nasty recession and a disappointing recovery from the credit bust. Now he reckons America is heading for another downturn.
"Post-bubble deleveragings are a multi-year adjustment process," he says. As the economy concentrates on paying down debt, growth is stunted and vulnerable to setbacks. Consumers, who account for around 70% of the economy, have just begun the long process of paying down their debt, which implies subdued spending. That has been going on for some time, but a new problem is that the fiscal stimulus has dwindled and looks set to be replaced with austerity.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
How does the Lifetime ISA work? Key LISA rulesWhat is a Lifetime ISA (LISA) and how much could the government bonus boost your savings by? We look at the perks and the pitfalls.
-
AJ Bell: a fine British fintech going cheapOpinion Don’t overlook investment platform AJ Bell, a significantly undervalued British business with an excellent financial base
