December 06, 2006

A Hard Rain's Gonna Come

Well, whaddaya know? Suddenly Morgan Stanley's chief economist and director of global economic analysis is saying what we "Conspiracy Theorists" have been saying for a year or more:
Mr Roach warned that the US would come close to falling into a recession next year, an outcome that would have wide-ranging effects...

"One to 1.5 per cent growth rate in the US is dangerous ... it could quite easily lead into out-right recession in my opinion."

Mr Roach blamed a fizzing of the US housing market, which he expected to burst, and referred to latest statistics showing new home sales are falling while the stock of un-sold properties continues to rise.
But hey! He is optimistic about China.


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