Capital Gold Group Report: Nobel Prize Winning Economist Krugman Sees 'Nasty' Recession, '"A Lot of Suffering'

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In an interview on Bloomberg.com, Paul Krugman, recent winner of the Nobel Prize for Economics, says that if credit does not start flowing in the next couple of weeks, the results will be catastrophic. 

He stated that even though unemployment is already over 6%, we are used to unemployment of 5% or below and that if the markets don't unfreeze fairly soon, unemployment will almost certainly reach 7%, and more than likely 8%.  "There is a calamity happening as we speak," Krugman said.

"We have a pretty skimpy social safety net."  Along with a prolonged weak job market, he stated that people will lose their health benefits, and their unemployment benefits will expire in a fairly short period of time.  "There is going to be a lot of suffering", Krugman stated.

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This page contains a single entry by J. Ryman published on October 17, 2008 1:41 PM.

Capital Gold Group Report: Dow Declines 733; S&P Tumbles 9% was the previous entry in this blog.

Capital Gold Group Report: GLOBAL MELTDOWN CAUSES RUSH FOR GOLD; MERRILL LYNCH STUDY SHOWS GOLD AT $1500/OZ IN NEAR FUTURE is the next entry in this blog.

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