Nouriel Roubini: “From Here on I See Things Getting Worse.”
In an interview with CNBC, the renowned NYU economics professor Nouriel Roubini reverted to his apocalyptic mantle of “Dr. Doom.” He said without equivocation that equities were likely to lose 20% of their current valuation. He pointed out that the Eurozone debt crisis and general weakness in the global economy will create severe challenges for investors.
Regarding the Greek sovereign debt crisis, Roubini described efforts to bail out Athens and other highly indebted Eurozone countries as “mission impossible.” He went on to provide a dire overview of the fiscal crisis gripping many advanced economies.
“What needs to be done is clear. We need to raise taxes and cut spending. Otherwise we’re going to get a fiscal train wreck,” warned Roubini. Readers of my book, “Global Economic Forecast 2010-2015: Recession Into Depression” are aware that my own projection is that the growing sovereign debt problem will mark the next phase of the global economic crisis, sparking a synchronized global depression.