Murdoch: Long-Term Economic Situation 'Dangerous'; Recovery 2-3 Years Away

NewsBusters ^ | April 4, 2009 | Jeff Poor

[Rufus2007]

No one can accuse News Corp. CEO Rupert Murdoch of being an economic cheerleader, despite his net worth of $4 billion according to Forbes magazine.

In an interview with Fox News Channel and Fox Business Network anchor Neil Cavuto on April 2, Murdoch was not hopeful the financial markets would recover their value within the next 12 months.

"Look, I'm not a market expert," Murdoch said. "I would say this is a bear market rally still. We're not going back to the old levels in any hurry at all. That's two or three years away."

..more (w/video)..

[Rufus2007]

And they mock Fox Business at other networks for being too optimistic on the market.

[org.whodat]

The simple answer is how long does it take to sell 14 million units of over built, over priced homes, in an economy that is down. Even today, there are builders out there that think they can start producing more tomorrow.

[Ev Reeman]

I agree with Murdoch. While upticks may occur from time to time I think the market and economy woes are still out there and havent been fixed. In fact, so far everything the Congress has passed hasnt done any good and is not likely to do any good either and in fact will probably only make things even worse over time. That is the sad but inevitable fact.

[org.whodat]

In fact, so far everything the Congress has passed hasnt done any good and is not likely to do any good either and in fact will probably only make things even worse over time. That is the sad but inevitable fact.

So far the problems have not been fixed are attempted to be fixed. It is one of those, K street hasn't approved anything yet, they are still stealing, why fix it.

[what's up]

We're not going back to the old levels in any hurry at all. That's two or three years away."

Hmmmm....almost 100% increase in 3 years?

That is actually not bad at all.

[blam]

""I think the long-term situation is still very dangerous," Murdoch said at the National Cable & Telecommunications Association's Cable Show in Washington, D.C. "And, I don't think anyone has the answer - whether we're coming out this year, next year or in five years time. But, I'm slightly pessimistic because I think that everybody, every family, rich and poor, are poorer than they were a year ago."

[Vince Ferrer]

Nasdaq has still not recovered from the dot com bubble bursting in 2000, and Japan’s Nikkei index has still not recovered from its real estate bubble in the late 80’s. The only thing that can “recover” the stock market to 14k in the next few years is a lot of inflation.

[Matchett-PI]

There were 5 - 50% upside moves in the stock market during the great depression, and each time it went back down.

People should not get suckered by these bear market rallies, and duped — just because the economy may begin looking up in June — into thinking that things are getting back to normal.

The only reason there’s any kind of economic activity going on at all is because the Fed is dumping play money out of the sky.

It’s a head-fake and not sustainable. In a few months inflation and all that comes with it will show up with a vengence.

[Cindy]

Are you looking for a job?

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