Revisiting the white swans of 2020

Project Syndicate/Noriel Roubini

Graphic image of Humpty Dumpty perched happily on a wall, antique“Alternatively, with so much uncertainty, risk aversion and deleveraging on the part of corporations, households, and even entire countries could result in a more anemic U-shaped recovery over time. But if the recent surge of COVID-19 cases in the United States and other countries is not controlled, and if a second wave occurs this fall and winter before a safe and effective vaccine is discovered, the economy would likely experience a W-shaped double-dip recession. And with such deep fragilities in the global economy, one cannot rule out an L-shaped Greater Depression by the middle of the decade.”

USAGOLD note:  Noriel Roubini is a great black bear watching over a flock of white swans …… of which a few have already landed. “Why,” he asks, “are financial markets blissfully ignoring these risks?”


Repost from 7-29-2020

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