Dr. Doom Still Gloomy on Economy

NYU's Roubini thinks more rough times lie ahead
By John Johnson,  Newser Staff
Posted Apr 7, 2009 9:43 PM CDT
A specialist works the floor of the New York Stock Exchange.   (AP Photo/Richard Drew, file)
camera-icon View 1 more image

(Newser) – Dr. Doom isn't ready to ditch his nickname. Nouriel Roubini, the New York University economist who predicted much of the current malaise, says he doesn't see a happy ending any time soon, Reuters reports. Although the stock market has generally performed well of late, he thinks it will be a short-lived rally and predicted more bad news for the banking and housing industries.

"Macro news, earnings news, and financial shocks are going to be worse than expected and that's why I believe this is still a bear market rally," said Roubini. "I am more a realist than a pessimist. I'll be the first one to call for the bottom of this economic contraction, recovery of the market when I see a sustained economic and therefore financial recovery," he said. But it's not all gloom: He said stimulus packages will eventually work, though "later rather than sooner."