How long will this go on?

The New York Times op-ed page features a string of short articles by various economic and financial figures on when the recession will end. The consensus view is that the American economy will come out of recession late this year. But Roubini and Niall Ferguson offer far more bearish takes.

Roubini warns that

“We now face a 1 in 3 chance that, if appropriate policies are not put in place, this ugly U-shaped recession may turn into a more virulent L-shaped near-depression or stag-deflation (a deadly combination of economic stagnation and price deflation) like the one Japan experienced in the 1990s after its real estate and equity bubbles burst.”

“I find it quite easy to imagine two consecutive years of contraction. And I don’t rule out two more lean years after that.”