Sunday, September 19, 2010

Nouriel Roubini : things are going to get worse before they get better

Roubini : .... if you consider what happens, growth in second quarter was estimated originally at 2.4 then at 1.6. Given the new housing numbers are going to be revised to 1.2 that is already a growth recession and we know there is second half of the year is going to be worse than the first half because all the tailwinds to growth become headwinds. We have had the fiscal stimulus come to the economic growth, the base effects are gone, the inventory adjustments are gone and demand for homes has fallen. So we know the second half is going to be worse than the first half, you look at the data for July and August, they all suggest the slowdown and if you start from 1.2 in Q2, the third quarter looks lacking less than 1% and 1% maybe not technically a double dip recession but it is going to feel like recession because there is not going to be job creation.

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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