Welcome to the Nessie Recession?

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Ian Pearson from Futurescape is predicting a "Loch Ness Monster" recession:

"...rather than a double dip, our view is that we are looking at more of a roller-coaster decade in which we will see regular rises and falls in different economies around the world. Our colleague Ian Pearson refers to this as a ‘Loch Ness Monster’ downturn – with uneven peaks and troughs emerging with very little warning. The pain will be felt quite unevenly – those economies that have done most to curb or prevent their banking system from entering into huge leveraged debt transactions and complex high volatility derivatives contracts are likely to fare best – or suffer the least relative pain."

And in support of this a report from Société Générale is cited that warns clients:

"...to prepare for a possible "global economic collapse" over the next two years. They highlighted that total US public and private debt was now 350 per cent of GDP and many years of deleveraging would be inevitable – even without further shocks. The report warns that even without any new public spending, within two years, government debt would rise to 125 per cent of GDP in the US and the Eurozone, 270 per cent in Japan and 105 per cent in the UK."

So batten down the hatches guys - and if you're in business: stick to the knitting!

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