I don’t buy into David Rosenberg’s deflation view but as time goes on I’m considering it more and more seriously.
The video of David Rosenberg below is from WealthTrack.
- The previous recession was a corporate balance sheet recession. This one is a household balance sheet recession. Corporate balance sheets are, in fact, the strongest in 50 years.
- Rosenberg is expecting DEflation and he points out that with deflation the real level of debt increases which makes it even harder of governments and households to clean up their balance sheets.
- Unemployment will remain high.
- Interest rates will remain low.
- Economic growth will remain low.