David Rosenberg on Wealthtrack using the D word

Consuelo Mack of Wealthtrack does some great in depth interviews with the leading financial minds out there. David Rosenberg former Merrill Lynch economist and now economist of Gluskin Sheff is one of those great leading minds. I have followed him for some time now and his analysis is top notch. He called the financial crisis and the recession of 2008. Many detractors will point to him not seeing the 2009-11 rebound in stocks. However his strategy of bonds, income producing stocks, and precious metals has been very successful with incrementally less risk. Now he is using the D-word, Depression, to describe the times we are in. I tend to agree with him believe it or not. I don't think it's as visible as it was in the 1930s. We have social safety nets that have been hiding the stress. Food stamps being an example of this stress. They have increased in usage since the start of the financial crisis and are up to 15% of the population using them. The Huffington Post has further details on this. Whether we call it a Great Depression or not remains to be seen and will be determined in large part by governmental policy snafus. At the very least we are in a balance sheet recession. Which are financial in nature and are long drawn out affairs. I think the label of "depression" will come well after the fact so don't expect it to become mainstream anytime soon.

Luckily for us David Rosenberg does take an optimistic twist at the end. Which I feel is very important as we go through tougher times. We will get through this and political/leadership change in the developed world will eventually occur and help. In addition deleveraging and time will be the most helpful. Watch it all and enjoy: