Dr. Doom Fears a Double Dip Recession

Roubini thinks macro data contradict cheery recovery theories
By Kevin Spak,  Newser Staff
Posted Mar 11, 2010 11:36 AM CST
NYU Professor of Economics and co-founder and Chairman of Roubini Global Economics Nouriel Roubini speaks during a luncheon at the Asian Financial Forum in Hong Kong Thursday, Jan. 21, 2010.   (AP Photo/Kin Cheung)
camera-icon View 1 more image

(Newser) – There’s a debate raging over whether the US will recover quickly or undergo a painful double-dip recession. Guess which side eternal pessimist Nouriel Roubini is on? Dr. Doom doesn’t like the macroeconomic numbers he’s seeing. The horrendous consumer confidence, housing and employment numbers “actually suggest a significant downside risk even to the anemic levels of growth which I forecast for” the first half of 2010, he writes in Forbes.

But the second half could be really grisly, as the economy suffers stimulus withdrawal—and by the way, at the height of the stimulus, “final sales were growing only at a pathetic 1.8% average rate.” Roubini still thinks the risk for a double-dip recession is only 20%, but that’s much higher than conventional wisdom supposes. And there’s still the possibility that Europe’s debt crisis could balloon into a double dip hitting the entire high-income world.

My Take on This Story
Show results without voting  |