Rosenberg Confirms a Gloomy Outlook

Merrill Lynch's chief North American economist, David Rosenberg, said on CNBC's Squawk Box this morning that it is likely GDP will contract in all four quarters of 2009. Rosenberg also argued that U6 unemployment, a broader measure of unemployment than the one presented in the financial press, is around 12%.

Furthermore, he joined the ranks of those dismissing inflationary concerns related to expanded monetary and fiscal policy (this argument sounds familiar). Like many other economists he referenced Japan's massive monetary and fiscal policy moves, which did not lead to significant inflation in that nation.