Tags: roger | us | economy | recession

Jim Rogers: US Looks Headed for Recession, Stock Crash in 2013

Tuesday, 24 Apr 2012 07:57 AM

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Taxes are set to rise next year, and as a result, the U.S. economy is headed for a recession and stocks are poised to tank, warns international investor Jim Rogers.

The Bush tax cuts are set to expire at the end of this year, but election-year politics will likely mean they will expire and renewing them after expiration will be messy.

Add to that, the economy is due for a downturn anyway if history serves as an indicator.

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

"First of all, we have tax increases January 1," Rogers tells Fox Business News. "Secondly, we've had recession every four to six years ... Next year, it's four to six years."

Stocks are easing off their recent highs and more declines are set to come even as earnings reports surprise on the upside.

"I've been investing for a long time, and I have noticed when good news comes out and stocks go down, something's wrong. So you better be worried," Rogers says.

"I don't know what's wrong. But I know we've had a great first quarter. One of the best first quarters in history. And now good news is coming out and stocks are going down."

Other experts agree that next year may be rough for the U.S. economy.

Congressional inaction on pending tax hikes and spending cuts could send the country over a dreaded fiscal cliff and make 2013 resemble a recession, says Mark Zandi, chief economist at Moody's Analytics.

Without action, the "fiscal cliff'' could shrink next year's economy by 3.5 percent, or about $575 billion, Zandi says, according to USA Today. "If policymakers do nothing, early 2013 will be recession-like," Zandi adds.

Editor's Note: Economist Unapologetically Calls Out Bernanke, Obama for Mishandling Economy. See What They Did

Other noted market observers say the U.S. economy is doomed for sluggish growth at best as the country deals with a massive debt overhang and too little growth.

"My view throughout has been that we were going to have a very weak, very uncertain, very inconsistent recovery in all the developed countries," Martin Wolf, chief economics commentator at The Financial Times, tells Yahoo's The Daily Ticker.

"The U.S. can continue to grow, but it's going to be disappointing growth. I've always thought [the recovery] would be a 7-10 year process from the start."

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