Dr. Doom: Europe on Path to Recession

And America might 'run into the wall'
By John Johnson,  Newser Staff
Posted Jun 5, 2010 11:55 AM CDT
Nouriel Roubini, a professor of economics at New York University, speaks during the Global Financial Forum, Monday, April 26, 2010, in New York.   (AP Photo/Mark Lennihan)

(Newser) – Dr. Doom isn't happy with what he sees happening in Europe, which the NYU economist (real name Nouriel Roubini) says is on the path to recession or something very much like it. Some interview highlights, as reported by Reuters and Bloomberg:

  • In the euro zone, "growth will fall toward zero. Even if that is perhaps not a real recession, it will feel like one. Greece was just the tip of the iceberg."

  • The euro will fall to parity with the dollar or below over the next year. “An orderly fall in the value of the euro is the only thing that is going to prevent a breakup of the monetary union."
  • "The Americans too will run into the wall at some point if the carry on the way they are," he said. (No elaboration is provided in the interview with a Swiss daily.)

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