Financial Veteran Robert Karofsky Weighs in on Ongoing Economic Recovery

A recent New York Times article wonders if the U.S. is moving from crash to bubble; Robert Karofsky has weighed in with his take.

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New York, New York (PRWEB) April 23, 2013

According to financial services veteran Robert Karofsky, efforts to revive a stagnant U.S. economy have been under way for some years now, yet it remains to be seen whether the economy’s trajectory is totally positive. While the last several months have brought with them numerous signs of encouragement, a recent New York Times article calls some of these signs into question. The article wonders if perhaps the U.S. economy is “moving from the crash to the bubble, dispensing with… economic recovery.” According to Karofsky, this is not an illegitimate concern, and indeed, the effects of the financial downturn of 2008 are still being unraveled. Karofsky has commented on the article with a new statement to the press.

“The Fed has taken some truly extraordinary measures, in recent years, to revive the economy, yet despite some signs of progress, the big picture is still grim; unemployment rates are high, and trading still reflects a paradigm deeply impacted by the recession,” Robert Karofsky states, in his press statement. “Given this, it is not unreasonable to wonder if the U.S. is, in some ways, sidestepping the true business of actual recovery, and moving toward another bubble.”

According to the New York Times, the “unconventional policies” of the Fed have been implemented with the hopes of ushering in a self-sustaining economic recovery. Instead, the article contends, these efforts have “kindled speculation.” Continues the article, “Investors are desperate for yield and are paying up for riskier assets. In areas like real estate, structured finance and equities, the markets are ahead of the fundamentals.” The bottom line, according to the New York Times article, is that federal policies have led to “abnormal growth,” suggesting the early signs of an economic “bubble.”

Karofsky himself is no stranger to discussion of the recession’s ongoing impact on the U.S. economy. As recently as last year, Karofsky sat in on a panel of trading professionals, opining on the new market paradigm.

“We are in a new paradigm and I don’t think that it is necessarily cyclical,” commented Karofsky, at the time. “Certainly, it is unlikely that we will revert back to the 9bn shares a day that we used to trade in the United States. In part, this is because everything we’re living through now is a by-product of the [financial] crises that have occurred during the last [several] years.”

Robert Karofsky is a long-time member of the financial services and banking industries, and has served as an analyst and as a trader for several of the world’s most prestigious banking institutions, among them Deutsche Bank.

ABOUT:

Robert Karofsky is a veteran of the financial services industry, and has served as an analyst and trader for a number of high-profile banking organizations. In addition to his banking work, he also seeks to provide financial advice and literacy, opining on such matters as portfolio management and retirement planning. Karofsky is also an active philanthropist, and advocates on behalf of St. Jude’s, Sloan-Kettering, Ronald McDonald House, and Columbia Presbyterian Hospital Memorial.


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