Nouriel Roubini is the big thing in economists these days, and he says GDP numbers are likely to be closer to zero growth than 1% when revised 2nd Quarter results are reported.
The famed economist set off waves yesterday when he tweeted: "Q3 GDP growth very likely to be below 1 percent; and likely to be closer to 0% than to a pathetically lousy 1 percent. So double dip risk is now > 40 percent."
CNBC host Jim Cramer figures when GDP numbers are released tomorrow, they're going to be in the .5 range. And he wonders why the media, and folks on Wall Street, will be in a frenzy over what everyone knows is going to happen.
On Aug. 26, the Dow Jones Industrial Average closed below the 10,000-point mark. And while there have calls by prominent economists that say a double-dip recession is more likely, Cramer still showed his astonishment over the rosy attitudes of some.
“I don't know what network they’re – you know, if you listen to everybody here, everyone's looking for 0.5 percent. So when it comes out at 0.5, I want to know who is still surprised. What planet are they on?”
Smokin' Bad economic news increases the weight on the electoral prospects of Democrats in November. And Robiini doesn't see good things happening.
Based on the current data, third quarter growth will be well below one percent with growth closer to zero percent in the second half of 2010, he noted. Any recent improvements in the economy have come as a result of inventory adjustments rather than growth in final sales, Roubini added.