The president of A. Gary Shilling & Co. said, “The major economies of the world are fairly stable, but I do see a global recession. Europe is probably already in it, and I think it will be a severe one.”
He added that Europe is in the same position now that the U.S was in 2007 and 2008.
“They’ve got a financial crisis that has spilled over into the goods and services side, or the real economy,” Shilling (left), said. “The fact that they have a common monetary policy but not a common fiscal policy like we have is going to make it more difficult for them to deal with. So I think that could be very severe.”