Nobel Laureate Forecasts Global Economic Recession Skip to main content

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Nobel Laureate Forecasts Global Economic Recession


Are you buying forecasts of an economic recovery? Don’t believe another global recession is possible? Just ask Michael Spence, professor at New York University’s Stern School of Business and winner of the 2001 Nobel Prize in economics. Recently, Professor Spence told Bloomberg Television Wednesday that there's "probably a 50 percent" chance of the global economy slipping into recession.

The notion of the United States reverting back into another recession has been on the minds of many economists throughout 2011. But Prof. Spence forecasts that any measurable economic downturn here at home would likely spread like wildfire throughout the rest of the world. “I’m quite worried,” Spence told Bloomberg Television in an interview in Hong Kong. “A combined downward dip in Europe and America, which is a good chunk of the industrialized economies, I’m quite sure will take down growth in China particularly, and that will then immediately spread to the rest of the emerging economies.”

According to The Huffington Post, “a slew of recent economic data indicates the economy is slowing, if not soon to enter recession. This Spring, the U.S. economy grew at a rate of only 1 percent, according to the Commerce Department. GDP growth has been adversely affected by weak consumer spending -- which accounts for 70 percent of the U.S. economy -- and high levels of unemployment, economists say.”

Spence isn’t the only one threatening more economic troubles for a world of struggling nations. Joining the Nobel Laureate’s analysis, Meredith Whitney, who noted "increasing signs" of a double-dip earlier this month. History is also on Spence's side: “9 of 11 recessions since World War II were preempted by periods of growth of 1 percent or less.”

All of this news comes as long-term unemployment is skyrocketing; unemployment benefits have stalled in Congress during a period of forced austerity and concerns of rising debt; and consumer spending flags. As a result, many believe that economies all over the world, in various stages of collapse, are trying to balance job support and creation with the competing goal of decreasing deficits. But trying to reduce deficit spending to the detriment of those trying to find work could actually work to the detriment of tens of millions of unemployed workers, many of whom will go jobless for years, and some of whom will never work again.

So, if you are already struggling financially and fear the further economic impacts of a global recession, now is the time to take on your financial woes and take back your fiscal freedoms by making a fresh start through bankruptcy. Discharging personal debt through bankruptcy now is, in some cases, the only solution for so many jobless Americans—especially unemployed workers facing years without steady income, and, now, exhaustion of government unemployment benefits—to keep their personal lives financially afloat and creditors at bay. In short, what policy makers can’t do for you, you can do for yourself.

What will it take to preempt a global downturn? "Bold action on both sides of the Atlantic," Spence says.  Don’t fall into your own economic depression: take bold action yourself!

If you already find yourself in dire straits as America faces another economic downturn, knowing a qualified bankruptcy attorney is the first best step to help you regain your power, conquer creditors and face your financial fears, yielding—all with the right kinds of support, information and insights—at a low cost— for a viable and secure future.  The bankruptcy attorneys at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at Simply click on the yellow “FREE Consultation Now” button.

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