Guru Strategy: Gary Shilling says the economy needs another trillion dollars

Few people can boast a market forecasting track record like that of economist Gary Shilling. The president of A. Gary Shilling & Co. and editor of a monthly newsletter, Insight, Shilling predicted the recessions of 1969, the early 1990s and today. In fact, he was sounding the warning bell -- mostly on deaf ears -- long before the latest recession began. He predicted that the housing bubble would burst, that Treasury bonds would rally, that stock prices would implode, and that U.S. consumers would halt two decades of wild spending, and instead focus on saving. He was right on every count.

With stocks surging -- the S&P 500 is up more than 37 percent from its low in March -- we turned to Shilling for his view on the economy and whether the government's strategy of pumping trillions of dollars into the market will help to end the recession.