The Return of Dr. Doom

Nouriel Roubini predicted gloom and doom in a now famous but often misreported speech at the IMF on Sept. 7, 2006. Here’s what he really said:

“my view is that the risk of a hard landing is very high for the U.S. economy. I see essentially a recession coming by next year. I give it a very high likelihood. I argue that housing today, like the tech bust in 2000-2001 will have a macro effect; it is not going to be just a sectoral effect. I argue that U.S. consumers are now close to a ‘tipping over’ point given all the vulnerabilities I have discussed. I argue that the Fed easing will occur, so the next move is going to be a cut, but it is not going to prevent a recession. And, finally, I argue that the rest of the world is not going to be able to decouple from the U.S. even if it is not going to experience an outright recession like the United States. So on that cheerful note, I will stop.”

Read the full transcript here.

Posted by at 8:48 PM

Labels: Events, Profiles of Economists


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