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Wednesday, May 23, 2012

Roubini : By Next Year You Could Have a Perfect Storm

Nouriel Roubini : WELL, I SEE, 2% GROWTH IS BETTER THAN EUROPE THAT IS ONE BELOW U.S. POTENTIAL OF UNEMPLOYMENT BEING HIGH. BUT I WORRY ABOUT NEXT YEAR BECAUSE BY NEXT YEAR THERE IS A FISCAL DRIVE AND GIVEN THE FISCAL CLIFF AND WAGES ARE NOT GROWING REAL TERMS , SUSTAINABLE INCOME GROWTH THAT'S BEEN TAXES AND TRANSFERS. SOME OF THEM ARE GOING TO EXPIRE NEXT YEAR SO DOUBLE WHAMMY. FISCAL DRIVE AND ANOTHER DELEVERAGING ON HOUSE NOTES. THAN IF THE GROWTH IS ONLY 2% YOU GET THIS DRAG, GO TOWARDS 1% IS BACK TO STALLED SPEED, THE RISK OF A DOUBLE DIP IN A SITUATION IN WHICH EUROPE IS IN TROUBLE AND WE MIGHT HAVE A WAR WITH IRAN, THE ISSUE OF THE NUCLEAR PROLIFERATION, CHINA IS RUNNING DOWN, EVENTUAL HARD LANDING SO BY NEXT YEAR YOU COULD HAVE A PERFECT STORM. - in CNBC
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