Tags: bogle | recession | years

Bogle: Recession to Last Another Two Years

By    |   Tuesday, 24 Feb 2009 04:03 PM

The U.S. recession will last at least another two years, Vanguard Founder John Bogle says.

Investors have lost confidence and believe in a longer recession, demonstrated by the S&P 500 falling by 53 percent from October 2007, Bogle said.

“These are certainly the times that try men’s souls, and particularly investors’ souls,” he told Bloomberg Television.

Bogle believes that the stock market has “got to be discounting an awful lot of the bad economy that we see ahead. We’ve got to be getting close to the lows in the stock market finally.”

U.S. Federal Reserve chief Ben Bernanke also warned Congress that the recession could last well into next year, the BBC reported.

He said a turnaround would depend on the financial and credit markets working normally.

"Only if that is the case in my view there is a reasonable prospect that the current recession will end in 2009 and that 2010 will be a year of recovery," he said.

Housing prices continued to plunge in December. The S&P Case Shiller house price index stated that the price of a single-family home had fallen 18.5 percent in December compared with December 2007.

"There are very few, if any, pockets of turnaround that one can see in the data," said David Blitzer, chairman of S&P's index committee.

"Most of the nation appears to remain on a downward path."

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The U.S. recession will last at least another two years, Vanguard Founder John Bogle says.Investors have lost confidence and believe in a longer recession, demonstrated by the S&P 500 falling by 53 percent from October 2007, Bogle said.“These are certainly the times that...
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2009-03-24
Tuesday, 24 Feb 2009 04:03 PM
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