ROSENBERG: WE ARE ONE SMALL SHOCK AWAY FROM A NEW RECESSION

David Rosenberg was on CNBC Friday to discuss his outlook for the economy.  He says the economy has been in an unusual balance sheet recession for the last few years.   He now says we are just one small shock away from a new recession:

“Everything is telling you how soft the underbelly of the economy really is….We’re just one small shock away from the economy going back into recession.”

He says the economy is likely to be back in an official recession by the first quarter of 2012.   Rosenberg maintains that a weaker economy is going to result in more QE.  It’s not a matter of whether there is more “stimulus”, but what it looks like:

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Part 2:

Source: CNBC