David Tice, chief portfolio strategist at Federated Investors, talks with Bloomberg’s Matt Miller and Kathleen Hays about the outlook for the U.S. economy. Tice also discusses a report showing U.S. employers cut more jobs than forecast in June, the government’s response to the financial crisis and the outlook for stocks.
Miller acknowledged that the decline is worse than expected and asks “What are we going to see as far as unemployment in the future?” Tice responded that he thought it will go much higher, that it will get to 12 or 15 percent, maybe higher. He said “This is a secular decline in the economy; we really do believe there is going to be a depression. A lot of businesses are hanging on by a thread and they are going to throw in the towel.”
Host Miller commented that the nation has had 7 quarters in a row of declining inventory, and asks “Haven’t we gone down far enough?” Tice responds “It is not just an inventory recession. This is the dramatic aftermath of a credit bubble. We built too much, we eat too much, we drink too much and we spend too much. Now we have a big hangover.”
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