David Rosenberg Predicts a 2.5% Contraction in GDP for 2009

By on March 28, 2009

Carlos Torres reports that David Rosenberg, chief North American economist at Merrill Lynch & Co., drew on inspiration from market-rules theorist Robert Farrell and asset-bubble historian Charles Kindleberger to predict the economy’s demise.

Mr. Rosenberg says the current downturn will historically be referred to “GDII,” a reference to the Great Depression.

Rosenberg’s view has been based on the premise that the downturn in housing was going to have a lagged and severe impact on everything from economic growth to interest-rate spreads and stocks.




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