Nobel Laureate Michael Spence: Global Recession Has a 50/50 Chance

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Traders work on the floor of the New York Stock Exchange.
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With unemployment holding steadily at 9 percent and little sign of an upturn, it is hardly surprising that most Americans have a negative outlook on the state of the economy. According to a recent Associated Press poll, more than 7 in 10 Americans believe the country is heading in the wrong direction. Less than 40 percent of respondents feel that President Obama's jobs proposals will significantly raise the unemployment level from its current level.

In the interconnected, global fiscal system, America’s weak economic numbers have a direct impact on the markets around the world, and vice versa. No one knows that better than Michael Spence, Nobel laureate in economics, professor of economics at New York University’s Stern School of Business, and fellow at the Council on Foreign Relations. He thinks there is a fifty percent chance of the global economy slipping into another recession.