The economy is said to be on the rebound, but not everyone is convinced recovery is around the corner. ICAP Vice President Walter Zimmermann described the world economic scene as “fragile” and “vulnerable.” He sat down with NJ Today Managing Editor Mike Schneider to discuss the economy, both globally and in New Jersey.
Zimmermann said that while jobs are being added, action isn’t being taken fast enough. “At the current pace that jobs are being added, it’s going to take 10 to 15 years to get back to pre-2007 employment levels, which is clearly not satisfactory,” he said.
New Jersey would suffer more than other states if there is another financial meltdown, according to Zimmermann, because the New York metropolitan area has a higher concentration of financial activity. He also said that 2007 marked “unsustainable excess” that should be avoided.
He explained that gas prices and the stock market are connected and the stock market can’t be high when gas prices are low.
“I’m saying that to get lower gasoline prices, you really have to be rooting for a lower stock market. What happened today is a great example. The stock market is getting crushed and gasoline prices are way down,” Zimmermann said. “And you see this not just day by day, but hour by hour, minute by minute. Gasoline prices track the S&P 500. For better or worse, that’s the reality.”