[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Stephen_Roach_2008.jpg”]
The U.S. is in the midst of a “zombie consumer” generation that will dent GDP growth for years to come, according to Citi and Yale’s Stephen Roach (via The Globe and Mail).Speaking in Toronto, Roach said that the U.S. consumer “was toast,” and, as a result, GDP growth projections should be cut by 1% over the next 3-5 years.
Roach, who said late last year there was a 40% chance of a double-dip recession, says that he’s unwilling to let that possibility go.
From The Globe and Mail:
“I’m not prepared to turn in my stripes as a card-carrying double-dipper,” Mr. Roach says. “The lessons of centuries and centuries of financial history … make it very clear that post-crisis recoveries are weak. When they’re weak for a long period of time, they lack the cushion that economies normally need to withstand the blows of a shock. So I don’t think you can rule it out.”