Tags: Experts | Country | Recession

MFR's Shapiro: 100% Chance Country Will Like Feel It's in Recession

Thursday, 08 September 2011 10:36 AM EDT

Whether the country dips back into a recession remains to be seen, but there's a 100 percent chance it will at least feel that way for most Americans, says Joshua Shapiro, chief economist at MFR Securities in New York.

Economies usually follow self-fulfilling prophecies, meaning if people expect ups and downs, they normally follow suit.

Today many say the economy is heading back to recession or at best, doomed to slow growth.

Either way, potholes mark the road ahead.

"The chances that we are in something that is going to feel like a recession are close to 100 percent," Shapiro tells the New York Times.

"Whether we reach the technical definition" — normally defined as two consecutive quarters of economic contraction — "I think is probably close to 50-50."

Ninety percent of small-business owners say they're worried about a return to recession, although 79 percent say they're prepared for one, according to a Citibank small-business survey, the Huffington Post reports.

The survey also finds that 49 percent of business owners say they expect to grow when the economy recovers, and 28 percent say they already are expanding.

The figures show that uncertainty remains the only certainty, especially due to government policies.

"The reality is that there is uncertainty in the economic environment, in terms of taxes, benefits and healthcare costs," says Raj Seshadri, head of small-business banking at Citibank, according to the Huffington Post.

"They know it's a longer recovery and there are no magic bullets. However, they feel they are very well prepared and are holding their own."

© 2026 Newsmax Finance. All rights reserved.


StreetTalk
Whether the country dips back into a recession remains to be seen, but there's a 100 percent chance it will at least feel that way for most Americans, says Joshua Shapiro, chief economist atMFR Securities in New York. Economies usually follow self-fulfilling prophecies,...
Experts,Country,Recession
257
2011-36-08
Thursday, 08 September 2011 10:36 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved