Despite widespread fears of a "double dip" recession, Wall Street is hiring again in droves
, a sign that the financial industry anticipates a strong economic recovery. According to The New York Times, New York securities firms have added 2,000 new jobs since February, underscoring the tremendous recovery of the financial sector since the crash in 2008 and the subsequent bailout of faltering banks. Rae Rosen, a regional economist at the Federal Reserve Bank of New York told The Times, "Wall Street typically hires in anticipation of the recovery, and there is a sense that the economy has bottomed out and is slowly improving."
Liberal economists like Paul Krugman and Nouriel Roubini have also been very vocal in their prophesies of economic woes. Nobel laureate and Big Think expert Krugman
says that the recent warming of the economy does not herald a full recovery, noting that both previous depressions in American history included periods of growth. "We are now, I fear, in the early stages of a third depression," he wrote in his Times column
, calling for a second government stimulus package. NYU professor Nouriel Roubini—known as Dr. Doom for having predicted the 2008 crisis—doesn't expect another dip immediately, but he worries about another bubble. Unless robust financial reforms are made, he predicts there is a "high likelihood" that we will face another crash in 2 or 3 years
So why is Wall Street so bullish?
More from the Big Idea for Monday, July 12 2010