Martin Feldstein: 'Severe Recession' Dead Ahead

US Faces Severe Recession, Yahoo News, March 14: The United States is in a recession that could be "substantially more severe" than recent ones, National Bureau of Economic Research President Martin Feldstein said on Friday.

"The situation is very bad, the situation is getting worse, and the risks are that it could get very bad," Feldstein said in a speech at the Futures Industry Association meeting in Boca Raton, Florida.

"There's no doubt that this year and next year are going to be very difficult years." …

Comments

[Cal]

And weren't many people dumping on Nouriel Roubini a few months back thinking he was living in an ivory tower. It seems to me he is the only one who has seen the light. And all of this before Carlyse Capital and Bear Sterns. Is Lehman Brothers next?

[Dave Iverson]

Yes THEY were indeed dumping on Roubini, Cal. But I wasn't. I've been championing his and partner Brad Setser's work since I started blogging, and even before when I used to try to get Brad DeLong and Mark Thoma's attention (via comments) as to potentials for "liquidity trap" and other credit-bubble-related problems.

But Roubini was not alone in seeing potential problems. Paul Kasriel did and does. Stephen Roach did and does. Doug Noland did and does. The list goes on, but these are among those I continue to follow closely -- although it is now harder to access Roach's thoughts since he moved to the Far East.

[bailey]

Please, Let's add PK to the list of Economists (also BB) who chose to ignore the housing debacle until 2005 (after it imploded). And, let's not forget the tremendous efforts of Dean Baker. He was WAY out front of the housing debacle back when it could easily have been averted. He was the first I know of (by far) who pleaded for anyone to pay attention to the growing problem. He had it right from the beginning and STILL is largely ignored for his efforts.
By the way, I've been a PK groupie since the mid-90s (still believing his liquididity trap work was HUGE, but I LOVED & highly recommend Jim Kunstler's latest piece!

[Dave Iverson]

Thanks Bailey.. I've been neglecting to read Kunstler lately, and will now amend my ways..