Analysts differ on reasons behind slow recovery
Are recessions that occur after a financial crisis different from those which are not related to a financial crisis? Yes, but economist Michael Bondo argues that the present recession differs because post-financial crisis recoveries are usually faster than others.
New York Times columnist Paul Krugman disagrees and sees the inability of the recovery to gain steam simply part of the normal post-crisis cycle.
And things are likely to worsen, says Marc Faber, author of a new book, Gloom, Boom and Doom. Faber tells CNBC that the growing debt burden will result in a “colossal mess” in the West over the next decade.
“I think the deficit here (in the U.S.) — irrespective of who is in the White House — will stay above a trillion dollars per annum for at least as far as the eye can see,” he predicts.