Former Wall Street Analyst: Economy Could See Double-Dip
Chris CiarloChannel 2 News
Depending on who you are and where you live, the economy is showing some different signs of recovery.
However, for many, the best question is the worst over or could we see another economic meltdown?
We asked John Luers, former technical analyst for Wall Street and now Analyst for Tradeco that very question.
He said a lot of signs point to a possible double-dip recession.
"The situation in Europe is not good and what is very interesting about how the market works is the fact that things go fine than you get a little bit of bad data, and a little more bad data and they all the sudden the European crisis raises its ugly head and that will really take the market out," said Luers. "The real big problem I see with it all is the debt that's been printed and the jobless situation. Jobless recoveries don't work."
Luers said the move the market has made on Wall Street since October is almost unprecedented. He said the market's run up happened quickly, even quicker than you usually see from the market over years.
He said the Dow is hovering around 13,000 but usually when it gets this high so fast, it is preparing to pull back again.
Luers said the problem is our lack of production.
"We're at $15.7 trillion in debt and the GDP is 15.1. For the first time in the history of this country, we actually have more national debt than we do yearly GDP growth, which offsets it."
You can watch the interview with Chris Ciarlo and John Luers this weekend. It airs on Channel 2 this Saturday at 4:30am and 3:30pm and Sunday at 6:30am and 3:30pm.