Lakshman Achuthan Not Giving Up the Ghost on Recession Call

By on July 31, 2013

Lakshman Achuthan - ECRILakshman Achuthan, renowned contrarian economist and head of the Economic Cycle Research Institute (ECRI), said the U. S. economy continues to be in recession. In an interview with Bloomberg’s Tom Keene and Sara Eisen (see video below) reiterated his position: “Since mid-2012, the United States entered into recession.”

Regarding the Fed, Achuthan explained, “The U.S. central bank would not keep its ultra-accommodative monetary policy, if it was not convinced that the U.S. economy is sick.”

Achuthan added, “it is impossible not to take into account that since the beginning of the recovery about one million Americans between 35-54 years have lost nearly a million jobs.”

“The Fed has gone to the wealth effect to stimulate the economy and that mechanism is broken,” Achuthan stated.

Back December, Achuthan told CNBC’s Larry Kudlow the economy had been in recession since July, 2012 [link].

2 Comments

  1. Hyman Diamond

    August 1, 2013 at 9:37 am

    When will this man admit he’s wrong, has been wrong and will be wrong?

  2. AnonymousOne

    August 4, 2013 at 9:38 am

    Whether Achuthan is right or wrong, many feel we never got out of recession. Ask all those millions who are unemployed, given up looking for job, forced into taking social security at age 62, working part time, working as temps, we have become a nation of part time, temp workers with no benefits or rights.
    Stock market is the only thing that went past previous highs, even that when figured in inflation since year 2000, what should it be from year 2000 high?

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