Economist Nouriel Roubini remains Dr. Gloom

Throw cold water on reports that bearish economist Nouriel Roubini is turning into an optimist.
JUL 17, 2009
By  Bloomberg
Throw cold water on reports that bearish economist Nouriel Roubini is turning into an optimist. Mr. Roubini, whose warnings of a housing and credit collapse were eerily accurate, is standing by his forecast that there won’t be any economic growth before the end of 2009. “It has been widely reported today that I have stated that the recession will be over this year and that I have improved my economic outlook,” Mr. Roubini, a professor of economics at New York University, said in a statement. “Despite those reports, however, my views expressed today are no different than the views I have expressed previously.” Stocks gained Wednesday following news reports that Mr. Roubini said the U.S. economy would emerge from its recession at the end of the year. However, late Thursday, the economist released a statement saying that the comments were taken out of context and that his views remain the same. According to him, the United States is in the 19th month of a 24-month recession. He believes that there will be a shallow recovery in which the economy’s growth will average about 1% in the next few years, contrary to other predictions that the economy will bounce back by 2010. “Simply put, I am not forecasting economic growth before year’s end,” Mr. Roubini said. He also emphasized that there is a risk of a W-shaped recession near the end of 2010, when the U.S. faces a new setback amid an “anemic” recovery and deflationary pressures while large budget deficits and their monetization raise long-term interest rates. Mr. Roubini also said that the labor market is still very weak. He predicts a peak unemployment rate close to 11% next year, thus hurting labor income and consumption growth, leading to more defaults and losses on bank loans.

Latest News

SEC bars ex-broker who sold clients phony private equity fund
SEC bars ex-broker who sold clients phony private equity fund

Rajesh Markan earlier this year pleaded guilty to one count of criminal fraud related to his sale of fake investments to 10 clients totaling $2.9 million.

The key to attracting and retaining the next generation of advisors? Client-focused training
The key to attracting and retaining the next generation of advisors? Client-focused training

From building trust to steering through emotions and responding to client challenges, new advisors need human skills to shape the future of the advice industry.

Chuck Roberts, ex-star at Stifel, barred from the securities industry
Chuck Roberts, ex-star at Stifel, barred from the securities industry

"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.

SEC to weigh ‘innovation exception’ tied to crypto, Atkins says
SEC to weigh ‘innovation exception’ tied to crypto, Atkins says

Chair also praised the passage of stablecoin legislation this week.

Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest
Brooklyn-based Maridea snaps up former LPL affiliate to expand in the Midwest

Maridea Wealth Management's deal in Chicago, Illinois is its first after securing a strategic investment in April.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.