Tags: economy

Roubini: Recession For Another Nine Months

By    |   Tuesday, 30 Jun 2009 09:45 AM

Economist Nouriel Roubini is living up to his Dr. Doom nickname. He sees continued woes ahead for the economy and financial markets.

"This recession … is going to last another six to nine months," he told Bloomberg TV.

"People are talking a lot about these green shoots. But if I look at macroeconomic data for employment conditions, sales and consumption, about industrial production, housing, I see more yellow weeds than green shoots," Roubini said.

By next year, oil prices will move toward $100, the economist said. In addition, the budget deficit will surge, and "therefore pressure on central banks to monetize is very significant, because otherwise long-term rates are going to spike much higher."

When recovery finally occurs, it will be "anemic and subpar," with U.S. growth registering 1 percent to 1.5 percent over the next couple years thanks to "fundamental imbalances in the housing sector, financial system, corporate sector and now the rising budget deficit," he told CNBC.

Unemployment might reach 11 percent, he said.

Roubini sees the risk of a double-dip recession, with negative economic growth late next year.

The effect on financial markets: "I believe there's going to be a significant market correction for equities, for commodities and even for credit," he said.

Some others have dire forecasts for the economy, too. "All these things (government policy) have a negative effect on the economy and are making recovery very difficult," financial author Stephen Moore told Moneynews.

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Economist Nouriel Roubini is living up to his Dr. Doom nickname. He sees continued woes ahead for the economy and financial markets."This recession … is going to last another six to nine months," he told Bloomberg TV."People are talking a lot about these green shoots. But...
economy
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2009-45-30
Tuesday, 30 Jun 2009 09:45 AM
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