Wednesday 21 November 2012

NYU Economist Says the Worst Is Yet to Come For U.S. Economy

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Well known mainstream economist and professor at New York University Nouriel Roubini doesn’t think we’re out of the woods just yet. In fact, the famed theorist who foresaw the stock market crash and economic meltdown of 2008, thinks things are going to get even worse in the very near future.
There’s a reason that Roubini is often referred to as Dr. Doom (not to be confused with the other Dr. Doom, economist Marc Faber):
“Valuations in stock markets are stretched: price-earnings ratios are now high, while growth in earnings per share is slackening, and will be subject to further negative surprises as growth and inflation remain low. With uncertainty, volatility and tail risks on the rise again, the correction could accelerate quickly,” Roubini wrote in a Project Syndicate column.
Meanwhile, war could erupt in the Middle East amid rising tensions between Israel and Iran, which could further disrupt economic recovery and global financial markets next year.
In short, 2013 is shaping up to be a very volatile year.
”As consumers, firms and investors become more cautious and risk-averse, the equity-market rally of the second half of 2012 has crested,” Roubini wrote in the column.
“And, given the seriousness of the downside risks to growth in advanced and emerging economies alike, the correction could be a bellwether of worse to come for the global economy and financial markets in 2013.”
Via The Daily Crux and Newsmax Money News
The majority of Roubini’s forecasts have been right on target, which is likely why some of business’ best and brightest regularly attend his speeches, including the likes of Bill Gates and Warren Buffet.
If Roubini is right about this one, then look out below, because this latest correction in stocks has been just a small taste of what’s to come.
TheDailySheeple

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