19 October 2010

MACROECONOMICS: Roubini Calls U.S. "A Fiscal Drag"; Predicts Emerging Markets To Slow.

BLOOMBERG/ By Daryna Krasnolutska and Kateryna Choursina /
     At a conference in Kiev, NYU economist Nouriel Roubini, aka "Dr. Doom," predicted that the sluggish recovery in the U.S., western Europe and Japan will slow growth in emerging markets.
    He said the U.S. is a fiscal drag for the entire world.
     “My base scenario is that we will have a slow, U-shaped recovery in the advanced economies, but still there is a probability of a double-dip recession, or near depression, as in Japan in the 1990s,” Roubini said. “The recovery in advanced economies is still very tentative.”
      He also warned that the “fundamental problems” of Greece, Ireland, Italy, Portugal and Spain haven’t been resolved after Europe’s sovereign debt crisis.