Banking & Finance
Sign Up for free News Alerts
Roubini sees double dip recession but not depression
Posted on 04 July 2010 with 1 comment from readers
Professor Nouriel Roubini is back with another major call saying that a double dip recession is now in the bag with growth slowing sharply in the second half.
He argues in favour of breaking up the big banks so that they are no longer too big to fail. Roubini has a strong record since correctly calling the subprime crisis ahead of the housing slowdown in the United States. His subsequent dismissal of the bear market rally in stocks has been less well timed and only now is beginning to look ahead of its time.
1 Comment posted by readers:
A double dip, but not a depression? How can anyone know that? Once an economy with the level of debt that exists today starts to contract, with interest rates already at 0, anything can happen. You can’t use old economic models to predict what might happen in such circumstances. We will be in uncharted waters. Look at the subprime mess. How many saw that coming? But it happened.
And we have business leaders onTV saying that the President is anti-business. He isn’t, but if they keep calling him names, he might change his mind. They should remember that Obama didn’t come from the privileged class, and the USA isn’t Australia.
Don’t stay awake until the government breaks up any of those TBTF banks. The politicians will wear out the word ‘communist’ if the other political party tried it.