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In a recent interview with Bloomberg Television, Professor Roubini who predicted the financial crisis in 2006 said;

‘’There are significant downside risks still to the market and the economy,'’  '’We’re going to be surprised by the severity of the recession and the severity of the financial losses.'’

Roubini also said the recession will last 18 to 24 months, driving unemployment to 9%, and already depressed home prices could fall another 15%.

The US government will need to double its purchase of bank stakes and force lenders to eliminate dividends to save them from bankruptcy, Roubini also added.

A recession is broadly defined as more than two quarters of decline in real gross domestic product. for more information visit http://recessionsource.com

Professor Nouriel Roubini is a Professor of Economics at International Business
Stern School of Business, New York University and is the author of several books, including: Bailouts or Bail-ins? Responding to Financial Crises in Emerging Economies, Political Cycles and the Macro economy, and International Financial Crises and the New International Financial Architecture.

Comments from former Federal Reserve Chairman Paul Volcker have added more certainty that the US is already in recession. Whilst in Singapore on Tuesday he said;

“The first priority is to stabilize the financial system. It is necessary even though the cost involved is heavy government intrusion in markets that should be private,” he said in a speech at a seminar in Singapore.

“House prices in the U.S. are still declining. There are still more losses to come there. The economy, I believe, is in recession.”

Volker also responded to questions in regards to the massive injections of liquidity by the Federal Reserve, by saying;

“It’s not going to be a problem in the short run. Inflation doesn’t flourish in the face of recession,” he said.

“It’s something we have to worry about when we get out of this recession.”

“I have been around for a while. I have seen a lot of crises but I have never seen anything quite like this one,” Volcker  also said;

“This crisis is an exception. I don’t think we can escape damage to the real economy.”

Paul Volker was chairman of the U.S. central bank between 1979 and 1987 and is credited for battling double-digit inflation that flared up during his his time in the top position.

So now we wait in anticipation to see how the US will allocate the $250 Billion in funds into the banks…but does it really matter… is this another recession that we need to have?

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The International Monetary Fund has issued a bleak assessment of the world economy and confirmed both the United States and Europe are more than likely already in recession or on the brink in the near future.

The IMF advised in its latest World Economic Outlook report that it is now expecting global growth to significantly decline from 2007’s 5% percent to 3.9% in 2008 and even lower to 3% in 2009.

In the most recent statement, the IMF said “The world economy is now entering a major downturn in the face of the most dangerous shock in mature financial markets since the 1930s,”

I would say that we will be hearing a lot more from teh IMF over the coming months as the Global recession deepens…

Confused about the recession?  visit http://recessionsource.com

By now the inevitable is becoming reality.. The dreaded “R Word” AKA. Recession is coming soon to a town near you!

Most Financial experts & Economists globally are now singing the same tune. That is,  a Global Recession is kicking in. Some countries are already in recession whilst some others, thinking they are resilient are now starting to acknowledge that they will be affected by  ”the recession” next year.

Experts are disagreeing in the length of this recession, with some even forecasting a minimum of 2-3 years. Other economists are comparing this to the great depression of the  1930’s.

Just how long it will last? is something we will have to wait and see….

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