Monday, August 8, 2011

Roubini : we are headed towards a double dip recession

Nouriel Roubini : the ECB is going to start buying the bonds of Spain and Italy but they cannot do it for long ...we are running out of rabbits because every country including the US is going to do fiscal austerity via fiscal drag it is going to worsen growth because we cannot backstop anymore our banks , we may be doing another quantitative easing in the US but what difference it is going to make a QE3 when the last one did not made much of a difference , and everybody now wants to have a weaker currency to grow their exports , but in an equilibrium not all the currencies can be weaker , this will just lead to currency wars is becoming harder to have policy coherence between different countries

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