Tuesday, February 2, 2010

Roubini Now Sees a Flagging Recovery

Roubini Now Sees a Flagging Recovery

Nouriel Roubini, the New York University professor, nicknamed "Dr. Doom" for predicting disaster before the credit crisis, has again turned very negative on the U.S. economic recovery. There was a time, for a few months, when he thought the recession would end and modest growth would return. But whatever positive views Roubini may have had seem to have completely disappeared. During an address at the annual summit of business and political leaders in Davos, Switzerland, he said the economy was once again under dark clouds.

"The headline number will look large and big, but actually when you dissect it, it's very dismal and poor," Roubini said in a Jan. 30 Bloomberg Television interview referring to the initial measure of 5.7% economic growth in the U.S. for the fourth quarter. He added, "I think we are in trouble." He expressed his concern that the robust increase in the fourth quarter was due largely to inventory replenishment. He also predicts that GDP growth would slow to 1.5% in the second half as the impact of the stimulus package begins to dissipate.
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