Key economic forecast for Cayman: can you afford not to attend?
The annual Cayman Business Outlook conference has always proved to be an important draw for anyone in Cayman interested in hearing what the economic future will bring, yet perhaps few could have expected that Nouriel Roubini’s comments (a speaker at last year’s conference in January), on dire predictions of a global economic meltdown, would become such a painful reality. Business Editor, Lindsey Turnbull assesses Roubini’s predictions from his presentation at January’s conference and looks to January 2009’s Cayman Business Outlook (the sixth annual event), to appreciate why this event is a must-attend for anyone interested in Cayman’s economic future.
The headlines in March’s Journal, which carried a report on Nouriel Roubini’s presentation at this year’s Cayman Business Outlook screamed: “The party is over.”
Focussing on the US economy initially, Roubini said that the US would receive a hard landing out of its current crisis, into a recession of which the US could take many months to get out. In fact, he predicted that the US would experience a severe recession, saying “we cannot rule out a systemic financial crisis”. This recession will be damaging to the economy in Roubini’s mind because there will be an increase in financial loss and the liquidity and credit crunch will only worsen the situation, making the economic downturn even more severe. Uncannily precise predictions from a man the press internationally now label “Dr Doom” for his gloomy views on the economy.