Friday, September 10, 2010

Roubini : Growth to Halt in Second Half, Payroll-Tax Cut Needed

"It will be a vicious circle because the economy is going to surprise to the downside," Nouriel Roubini said. "The stock market is going to correct, credit spreads are going to widen. It will be a negative effect on consumption investment, the cost of capital is going to rise. And then you have another shock to the real economy, ending in a vicious cycle in which you can go off a cliff."
"That's already a growth recession," Roubini added. "The second half of the year is going to be worse than the first because all of the tailwinds to growth become headwinds."
via CNBC

Nouriel Roubini, of Roubini Global Economics, shares his economic outlook with Richard Trumka, of the AFL-CIO, and CNBC's Maria Bartiromo.

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